More changes are afoot at Sanlam, with the company confirming that “it intends to wind down its adviser network, Sanlam Partnerships Limited”.
The news comes less than a month after the departure of John White, chief executive of Sanlam Wealth, which saw Sanlam UK chief executive Jonathan Polin assume his responsibilities on an interim basis.
In a statement, Sanlam UK said: “The increased scale and systems capacity required to grow a financial adviser network no longer fits with Sanlam UK’s business model.
“All advisers firms have been information of the decision and Sanlam will be working closely with those businesses to find new, high-quality networks and relationships to help support continuity to clients.”
No details were provided about the timing of the wind up.
Loss of appeal?
It’s an interesting move for the company, as it comes at a time when regulatory and cost pressures have seen smaller financial advice firms – and some that aren’t so small – flock to networks for the additional support they can provide.
As rising professional indemity cover and levies continue to hamstring businesses, the collective security of a network has risen in appeal.
But the decision by Sanlam UK to close its network is an indication of how challenging and/or non-profitable it can be to run one.
Alternatively, it could signal a shift in the firm’s business priorities that was perhaps accelerated by the departure of White.
Time, as they say, will tell.
