Old Mutual Wealth, comprising Skandia and Old Mutual Global Investors, today announced it has acquired Intrinsic, which it calls the UK’s largest network of restricted and independent financial advisors.

Old Mutual Wealth, comprising Skandia and Old Mutual Global Investors, today announced it has acquired Intrinsic, which it calls the UK’s largest network of restricted and independent financial advisors. The deal is a sign of the kind of industry consolidation happening in the wake of the UK’s Retail Distribution Review.

The purchase price of the deal, which is subject to regulatory approval, wasn’t disclosed.

“The acquisition is an important step in the company’s strategy of creating the UK’s leading retail investment business, improving access to wealth management services for customers across the UK,” Old Mutual Wealth said in a statement.

Since the advent of RDR at the start of 2013, the wealth management industry in the UK has faced a rising level of costs and seen M&A activity between IFAs and other institutions. To read an article about some of the issues that have arisen, click here.

The transaction brings together Intrinsic’s network of 3,000 independent and restricted advisors with Old Mutual Wealth’s investment platform and asset management solutions.

“With one in ten advisors in the UK being part of Intrinsic we will be ideally positioned to facilitate that.  Intrinsic is a high quality business with high quality people and this acquisition is a sign of our commitment to the financial advice industry,” Paul Feeney, chief executive of Old Mutual Wealth, said.

Intrinsic’s business model will remain and will continue to support both independent and restricted advisors; Intrinsic will remain distinct within Old Mutual Wealth, with its own existing brand and management team. The existing Intrinsic teams will continue to run the business on a day-to-day basis, the statement said. Skandia’s protection products will be added to Intrinsic’s panel for its mortgage and protection advisors.

Intrinsic’s Cirilium asset management solution will continue to be part of its investment proposition. Cirilium is managed by Henderson, which is a strategic partner of Old Mutual Wealth.

As part of the transaction, Old Mutual Wealth will expand its advisor servicing teams; the firm said that “existing support and service will not be diverted away from existing advisers that do business with Skandia”.