Balfour said it would be looking to build on the relationships and reputation of the old company. He explained: “This is a long term venture for the new owners, who see SMS as becoming again a market leader when the industry slowly recovers. Our vision is based on SMS delivering market leading technology, service, products and compliant audit trails to intermediaries, networks, lenders, funders and the regulator.”

Balfour added “We will be setting up a legal trust for broker commissions on new business and the new owners are working with customers to ensure that all commissions outstanding from the old company can be resolved and paid. The new company will be leaner, more efficient and will lead on delivering sustainable and leading products which will benefit the end consumer and the introducer.”

Paul Wreford, spokesman for Phoenix, said SMS had always stood for the best that the industry had to offer. He concluded: “We are sure that with new funding and with a stripped down business model, which retains the best of the old business, SMS can again be the market leader for products and service in the new environment we are now facing.”