Sanlam Private Investments (SPI) has created a new company to which professional connections can outsource their clients’ wealth management through a joint venture approach.
The service, Sanlam Professional Partnerships (SPP) LLP, is a Financial Conduct Authority-regulated business, which solicitors and accountants referring clients to it will become joint venture partners in.
Under the agreement, the partner businesses will receive a 50% profit share on the money they introduce.
Laurence Houlden, director of professional partnerships at Sanlam, told Wealth Manager: ‘The key differential here is that because those professional firms are joint venture members in the LLP, they receive a profit share based on the value to the LLP of the introductions they make.’
The services offered by SPP include wealth management, financial planning and cashflow forecasting. Subject to practicality, Sanlam is also offering to send a chartered financial planner on site either full or part time to build the business within the partnership.
‘It is all about the benefits of an in-house financial service business without the associated cost or risk,’ Houlden added.
Ian Porter (pictured), SPI’s head of wealth management, said SPI has already signed up a corporate advisory company and an accountancy firm, and he anticipates ‘three to four more’ coming on board in the next two months.