Skandia brand to disappear as Old Mutual overhauls wealth arm

The Skandia label will disappear in the UK and a number of senior roles have been reshuffled as part of a major overhaul of the Old Mutual Wealth Management business.

Old Mutual’s merged asset management businesses will be known as Old Mutual Global Investors, as exclusively revealed by Investment Week earlier this week, while the platform business, including Skandia UK and Skandia International, are rebranded as Old Mutual Wealth.

Peter Mann (pictured), a well-known figure across the UK financial services industry, was chief executive of Skandia UK since May 2010, but will become managing director for the UK market in the restructured business, reporting to Paul Feeney, chief executive of Old Mutual Wealth, which will no longer be known as Old Mutual Wealth Management.

Steven Levin will become managing director for international markets where products will be marketed under Old Mutual International.

An announcement from the group said the merger of Skandia into Old Mutual will create a “simplified and improved customer proposition”.

The process will take place over the next two years to minimise disruption to advisers and their clients.

The asset mangament business, Old Mutual Global Investors, comprising Old Mutual Asset Managers (OMAM) and Skandia Investment Group (SIG) will continue to be led by Julian Ide, reporting to Feeney.

Further details on a restructure of this part of the business will be announcy in due course. Feeney said: “This is an important development for the business. We are no longer simply owned by Old Mutual, we are Old Mutual Wealth and an integral element of the group’s growth strategy. We are combining all the talents of the Skandia businesses to create a single, stronger company with one brand, one strategy and one vision.

“This vision is to become a leading provider of wealth management solutions both in the UK and across our international markets. We will do this by expanding our asset management capability and combining this with our UK platform strength and offshore bond products to create investment solutions our customers value.”

The move comes after a comprehensive review of the business, during which mounting speculation about how the £20bn Skandia platform will position itself post-Retail Distribution Review in the UK.

Skandia and a number of its peers have relied on rebates from fund groups to allow them to offer lower priced funds to investors, but the UK Financial Services Authority has moved to ban rebates, causing platforms to rethink their strategies.

Last month Skandia unveiled a new tiered charging structure, which will see investors receive unit rebates from fund managers directly. 

It is six years since Old Mutual bought Skandia in a £3.6bn deal.

 

This article was first published on Investment Week

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