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8 August 2013 | Adam Leach
Financial services firm Skandia has outsourced back office services relating to its trading activities to International Financial Data Services (IFDS) for the next two decades.
Under the deal signed yesterday, IFDS will take over responsibility for managing processes and technology relating to Skandia’s client management. Precisely what services will be outsourced is yet to be finalised, but the transfer is not expected to take place until 2016, and the production and distribution of client policy statements is among those services earmarked.
Client services and processes deemed front of house, such as telephone and email support, will remain in-house. Financials of the deal have not been disclosed.
Paul Feeney, chief executive of Skandia parent Old Mutual Wealth, said: “This relationship represents an investment in our business that will enable us to efficiently continue to improve the service and products we offer to financial advisers and their clients. We will be able to respond to adviser and customer needs faster than we can today and deliver additional functionality and greater flexibility to advisers via the UK platform.”
The details of the deal were announced as Old Mutual Wealth reported a profit of £2 million for the first half of the year, compared with a loss of £1 million for the same period 12 months ago.