“The older person gets what they want, which is money and retirement and the younger person gets a more profitable, larger book.”
As part of the transition, Saltus will assess all the clients and suggest who is suitable to move on to its platform and investment offering.
It will then advise those clients to move - of which typically 90 per cent move over.
Those who don’t move or are not suitable to move are taken on as financial planning clients.
“They will use their old platform and their old investment management solution and that's fine, because we're independent so we are not trying to force feed people,” he said.
However, Macintosh said the way in which its process works is changing, as it moving into more of a franchise, relationship type partnership.
“We'll do both and we will still acquire a business if the fit is good,” he said. “But what we are looking to do is to work with IFAs to solve different business problems for them.
“So there are quite a lot of IFAs who are trying to grow, or there’s a young person who wants to buy out their business partner who wants to retire. In these cases, we can provide capital to the business, without actually buying it, in the form of a loan or in the form of a minority stake.”
Macintosh said this allows the individual to buy out their partner and in return, Saltus asks the adviser to use its platform and investments where suitable.
“You carry on owning and running your own business so it's more like a partnership joint venture or possibly like a franchise.
“You do what you think is right but to the extent that you are using our platform and investment management, we can then provide more capital to you.”
Saltus has been working on this for the past 18 months and building the technology so it can effectively work with IFAs on a federated basis.
“It's like a kind of convergence program. So they could be directly authorised and operate under their own brand, or we could just provide them growth capital, or they can become an appointed representative.
“They can use our back office systems, and then we can provide compliance, and they can use our technology.”
He added: “Eventually, they can get as close as they like and start operating under our brand and then we can generate digital leads for them.
“It just depends on what they want, whether it's just dating or engagement or marriage.”
