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Sanlam signs up first firm to SJP challenger model

Sanlam signs up first firm to SJP challenger model

Sanlam has added its first advice firm to the partnership model it launched last year in order to compete with the likes of St James's Place and Standard Life.  

Former New Model Adviser® cover star Ergowealth will bring £165 million of assets under advice from 290 private clients to the partnership programme. The Marlow-based firm also looks after 10 corporate clients, 20 trusts and 80 individuals who are members of group personal pension schemes.

Sanlam's model aims to attract advisers with benefits such as investment research, business consultancy and access to capital from Sanlam without a requirement to sell their firm. 

It uses a similar model to the likes of St James's Place and Old Mutual Wealth, now known as Quilter, which have developed so-called vertically integrated models that include advice, platform and asset management businesses under one roof. 

After joining the partnership, Ergowealth will have access to what Sanlam describes as a 'restricted whole of market' proposition. This includes funds, discretionary management and model portfolios. However, the firm will remain independent. 

Ergowealth chief executive Alastair Whitehead (pictured) said Sanlam's model would not change the way the business is managed in the long run, and promised it would lead to growth for the firm. 

'At a time of consolidation in the advice market, this move secures the longevity of our business. We will now be pursuing a growth plan over the next five years through recruitment and acquisition to build Ergowealth into the leading chartered financial planning firm in the region,' he said. 

'Over the past 18 months we have had conversations with a number of consolidators and investors active in the UK advice market. The Sanlam partnership proposition was unique, enabling access to capital to grow without compromising our business model, without prejudicing the interests of our clients or our staff, and without losing control of either the ownership or the management of our business.'

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