Royal London has acquired digital advice enterprise Wealth Wizards from life and pensions rival LV=.
LV= bought a majority stake in Wealth Wizards in 2015, however has now offered the robo-adviser to Royal London for an undisclosed quantity, pending regulatory approval.
Last September, a Sky News report stated Royal London was in talks to purchase LV= in a £500m tie-up. However, LV= was snapped up by US personal fairness home Bain Capital final December.
In an announcement immediately, Royal London stated it purchased Wealth Wizards because the mutual insurer would profit from the robo-adviser’s know-how providing, and its expertise within the digital advice area.
Royal London stated it’s going to use Wealth Wizards’ digital advice interface to help advisers by serving to them to scale back danger, scale their advice and enhance the consumer expertise.
The supplier additionally instructed it’s going to use Wealth Wizards’ service to help members of office pension schemes.
‘As a big pension supplier, Royal London is well-placed to assist clients who’ve joined office schemes by auto enrolment,’ the agency stated.
At the second Royal London is likely one of the few suppliers to not provide advice itself. Its former CEO Phil Loney beforehand hit out at different suppliers proudly owning its personal advisers saying it was a part of a ‘actually detrimental pattern’ of vertical integration.
Loney was changed by Royal London’s new CEO Barry O’Dwyer in 2019. Although the supplier refused to be drawn as as to whether Wealth Wizards will likely be used instantly with clients by the supplier, the acquisition exhibits the insurer has made a step into th advice market.
O’Dwyer stated: ‘We are impressed by the progressive know-how supplied by Wealth Wizards and are delighted they’re becoming a member of our enterprise. We see the optimistic impression of advice on clients’ lives on daily basis and can work with advisers to assist to beat the advice hole within the UK,’ he stated.
‘As a mutual, our funding choices are solely pushed by the advantages supplied to clients and this acquisition is a superb instance of this in motion. I look ahead to welcoming Wealth Wizards to Royal London.’