IFA: Buying intellectual property will help retain status
Small adviser companies could foster a market for intellectual property as they scramble to remain independent after RDR.
A market for buying and selling adviser firms’ intellectual property could flourish in the run-up to the Retail Distribution Review and could further allow smaller firms to retain independence after the switchover, according to one IFA.
In an interview with FTAdviser on his firms RDR plans, to be published later today (20 July), Alistair Cunningham, director of Wingate Financial Planning, said one- and two-man bands will have a particularly difficult time complying with the requirements of the post-RDR independent label.
One solution to this, he believes, is for them to buy the intellectual property of another firm. This could include compliant model portfolios or investment strategy.
Mr Cunningham said: “The length and breadth will be enormous for one- and two-man bands to remain independent, although the Financial Services Authority has been softening it.
“We could sell model portfolios we have done due diligence on to somebody else. Some of that will be done by firms like 360.
“We could sell our investment committee strategy to acompany that doesn’t have the time to do it themselves.”
Other options open to smaller firms include joining up witha network, accepting the restricted label or merging with another small or mid-sized company such as Wingate.
Indeed, earlier this month Francis Townsend and Hayward and Wingate merged to form a larger partnership.