Sanlam seeks bigger footprint in IFA arena with consultancy service

Sanlam UK is stamping its mark on the IFA sector with the launch of a consultancy arm, discretionary management and ambitious plans for its adviser firm Buckles.

Sanlam UK, owned by South African insurer Sanlam Group, is hoping to forge links with 40 advisers through a consultancy business and discretionary model portfolio service. It has attracted 15 so far.

It is offering seven model portfolios that will be managed by Principal Investment Management, which Sanlam bought in 2008.

Charles Brand, director of managed funds at Principal, is heading up the service. Principal already manages more than £1 billion of assets for private clients.

Advisers who use the discretionary service will have access to Sanlam’s own risk-profiling tool, designed by Rick Eling, head of IFA investments at Sanlam UK and former investment solutions manager at New Model Adviser® cover star firm Buckles.

The tool divides clients into one of seven risk categories, which correspond to the portfolios.

The drive in the UK advisory market will be helped by a consultancy service focusing on helping IFA firms to prepare for the retail distribution review (RDR).

It will guide advisers on how to transition from a commission-based model to fees, and offers exam training and help in structuring client agreements.

Sanlam UK head of distribution Nigel Speirs said: ‘Sanlam UK is about partnering with IFAs – they are retaining their businesses and we are offering them a service proposition.

‘As part of this, we have hired a change consultant, who will help businesses move from a commission basis to a more RDR-friendly charging structure.’