Sanlam begins London client bank acquisition spree

Sanlam is to make its first client bank acquisition in London as part of efforts to expand its presence in the capital.

The Rhyl-based firm will take on £44m in funds under management from London Asset Management next week, although it will not bring in any of the firm's existing advisers.

It said the purchase was part of an ongoing acquisition programme, with two further deals expected before Christmas and more on the table for the New Year.

Sanlam chief executive Nigel Speirs said the company would use advisers from its graduate programme to service the new clients. Three had already moved down to London and were operating out of King William Street, he said.

"At the moment, there are a lot of advisers signalling they wish to exit the market," he said. "We pay fair value but it allows us to be selective about the clients we take on. We're looking for predominantly investment-based IFA businesses."

Contracts have already been exchanged and the deal will be completed next week.

Although London Asset Management was recently named as one of the firms the FSCS may pursue for mis-selling Keydata products, Speirs pointed out Sanlam will not take on any of this liability.

Sanlam itself was also included on the list, although it has written to the FSCS' lawyers to dispute the claims that it gave negligent advice on Keydata products, saying it has never advised on the investments.