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Sanlam snaps up client banks from Telford and Shropshire firms

by Daniel Grote on Aug 12, 2013 at 09:37

Sanlam snaps up client banks from Telford and Shropshire firms

National advice group Sanlam Private Wealth has bought the client banks of Telford and Shrewsbury financial planning businesses Conforth Consultants and Wealthport.

Conforth Consultants has 225 active clients accounting for around £32.2 million of assets, while the Wealthport bank brings 114 active clients with £19.5 million of funds.

Sanlam said a small number of its advisers would relocate to Telford to service the Conforth clients, while Mark Woodland, the owner of the business, would remain as a consultant to assist in the transition phase.

Wealthport clients will be advised by Sanlam advisers from the group's Rhyl office, and Wealthport owner John Kenny-Levick will leave financial services.

The deal means Sanlam Private Wealth has now bought 15 client banks since 2009. Chief executive Nigel Speirs (pictured) said: 'This activity remains a core strategy for Sanlam UK in the building and development of our advice-led wealth management business in this country.'

6 comments so far. Why not have your say?


Aug 12, 2013 at 10:12

Having investigated the Sanlam deal I personally don't think much of it.

All they are doing is giving you your own money back and its phased over quite a time. No big payment upfront and no guarantee of future payments and its not the most tax efficient route.

I'm baffled why anyone who is reasonably business minded would take this route, its not even share based so the tax issue remains high.

I think all IFAs should wise up and demand up front money as opposed to phased payments, only this way will IFAs drive up the prices of their business and obtain their real value.

To hand over your business and your clients to someone else without payment is not a good idea, you have lost control and your future payments are in the hands of someone else

Sadly the big consolidators are driving the market and many IFAs have simply caved in and sold.

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Aug 12, 2013 at 12:03

@Silver; Needs drive!

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Philip Melville

Aug 12, 2013 at 15:12


Drive what may I ask you again ? Would be pithy comments say absolutely nothing.

Still waiting for your new definition of the words buy and sell ?

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Aug 12, 2013 at 18:16

@Phil; The need to sell at circa 3x drives some to do so.

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Aug 12, 2013 at 18:36

The problem is the deals are not three times,it's three times with strings attached,payable from what you would earn anyway and loss of your business.

Add to this liability if anything is ever found to be wrong

Ifas should just shut up shop and stop selling,this would drive up the price and ensure the consolidators start paying for what the business are worth

The whole recurring income valuation is ridiculous,errrr what about new business and profit

Saying that theres plenty of ifas for sale which have no new business just trail fees being milked until a sale can be completed

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Aug 12, 2013 at 21:53

@Silver I agree with you;

Trail linked to providers has little value and will diminish in a straight line over next 24 months .

New business , if its fee based has value, but then the acquirer is interested in what is in place , not what might happen.

The only value is in client fees from happy informed ( TER transparent) clients. Trail is at best a gamble and more likely worthless within sufficiently short timespan to make the cost of acquisition exceed the marginal gain.

The kind of consolidators who are buying up these trail based banks at 2-3x ( I agree, tax inefficiently, and with IFAs own money) are hoping to convert to fees( at lower servicing cost) or , in some cases subvert to TER unfriendly DIFs.( and lets see how the FCA like that) .

No need to shut up shop....watch what happens to consolidators that have fed on pure trail....two in the news today.

In fairness quite a bit of the market movement is from mid-cap regional IFA's buying their small trail based neighbours for nothing.

..and so to bed.

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