Intelligent Money enters administration, Quai acquires key assets

Intelligent Money, a prominent investment management firm and SIPP provider, has officially entered administration as of May 28, 2024. The company, founded in 2002, managed a substantial portfolio with approximately 20,000 clients and $1.4 billion in assets under management.

The decision to enter administration was precipitated by a series of financial and regulatory challenges, including complaints upheld by the Financial Ombudsman Service (FOS) that led to unmanageable compensation claims.

Richard Heis and Edward Boyle of Interpath Advisory have been appointed as joint administrators.

Intelligent Money’s descent into administration was a direct result of its inability to meet the financial liabilities arising from FOS complaints, particularly concerning investments within its SIPPs. Prior to the administration, Intelligent Money had already arranged the sale of its pension business to Quai Administration Services Limited, ensuring the seamless transition of SIPPs, ISAs, and General Investment Accounts to Quai.

Quai steps in

Quai, a digital savings platform, has acquired Intelligent Money’s technology, staff, and trustee companies. Quai CEO Tony Webb expressed that the acquisition not only guarantees service continuity for Intelligent Money’s clients and IFAs but also significantly enhances Quai’s technical infrastructure.

“The transition will also be supported by Quai’s robust platform technology, which handles over 22 million transactions a year, ensuring a stable and reliable service for account holders,” said Webb.

Julian Penniston-Hill, CEO of Intelligent Money, added that he is “delighted” with the outcome of the deal, and that “this new chapter will provide continuity for clients and set a new benchmark in the industry.”

The transition to Quai is expected to be smooth, with the company already initiating recruitment to address any service backlogs and elevate service standards. Quai’s robust platform technology, capable of handling over 22 million transactions annually, promises a stable and reliable service for account holders.

Implications for clients and the industry

For Intelligent Money’s clients, the acquisition by Quai represents stability and the promise of continued service without interruption. The FCA has emphasised that Intelligent Money remains an authorised firm under its rules, although it no longer operates personal pension schemes. The Financial Services Compensation Scheme (FSCS) is now open to claims against Intelligent Money, with investigations underway to determine eligible claims for compensation.

The acquisition by Quai is a significant event in the wealth management sector, offering potential benefits and enhancements to service levels. It underscores the importance of robust financial and regulatory practices in the industry and the need for continuity in client services amidst corporate restructuring.

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