Tim Sargisson: Why Sandringham got into bed with M&G

Earlier this week you will have seen that Sandringham concluded a deal whereby our business will be acquired by M&G Plc, subject to regulatory approval.

Announcements of this type receive a polarised reaction. There are the industry dinosaurs with the 'hell in a handcart' nonsense. A view that centres on re-platforming, shifting all the assets, and ultimately becoming a restricted adviser.

The more enlightened recognise this deal for what it is: an excellent move and a well-thought-out acquisition, where clients of Sandringham will benefit from the improved financial strength of the business and increase in investment within the company. 

In 2012 Ken Davy established Sandringham. At its heart is the core value of achieving commercial success through positive customer outcomes. And a core focus to support, guide, and enable advisers to protect and enhance the lives of our clients.

That we have featured in The Sunday Times as the Top Rated Vouched For firm in both 2020 and 2021 speaks volumes for our adviser's success and the success of the Sandringham Way. In addition, next month, we are up for the Best UK Adviser as part of the prestigious Schroders UK Platform Awards. Anyone who knows Sandringham, and everyone associated with the firm will recognise we would never sell our soul for 20 pieces of silver. To this end:

• We continue as independent financial advisers. Sandringham is the independent advice arm of M&G Wealth.
• We retain our brand. We have spent years building trust and respect for our brand, and M&G is keen that we should preserve it. Sandringham and M&G's retail businesses will remain separate legal entities.
• Our employees' roles are not at risk. We have a business to run; however, we also have a business to grow under M&G. M&G is wholly committed to retaining our current team and office.
• Our proposition will remain the same. The way we do business was one of the key reasons we are attractive to M&G.

Despite this success, why now?

I'm sure any financial adviser reading this will be the first to admit that they don't spend enough time supporting clients. The reason is that you spend a disproportionate amount of time dealing with administrative chores and regulatory matters - these matter, but not when it is at the expense of supporting and servicing your client's financial needs. 

Sandringham made the wise move some years ago in selecting Benchmark Capital to address its technology needs. But, unfortunately, despite the excellence of the Enable back office and Fusion Platform, we still have to try and work through too much broken tech in our profession. 

In addition, the headwinds around regulatory costs stiffen. For example, the news that the industry could face a compensation bill of between a quarter and a third of a billion pounds for British Steel Pension Scheme transfers alone leads me to conclude that professional indemnity costs and other regulatory costs are only going one way.

According to Websense, I recently read that financial services firms are hit by security incidents a staggering 300 times more frequently than businesses in other industries, with attack patterns continually changing to outwit IT pros.

Firms must address the triple threat of continued poor delivery, increasing regulatory costs, and the threat of cybercrime. However, the simple fact is that this requires additional resources, support, and capital combined with the need to take business to the next level. M&G provides us with access to those resources and support and makes a compelling case to be stronger together. I can't disagree. 

So, we're confident about this next move for us. M&G has great respect for the technology we've employed, for our incredible team, and our culture. 

We will move faster and with more impact by leveraging M&G's scale and resources in a way that we would be unable to do on our own or with any other partner.

Tim Sargisson is chief executive at Sandringham Financial Partners