Newport IFA in drive to quadruple adviser numbers pre-RDR
Gwent-based firm acquired Newport IFA last year and says more advisers may be looking to remove burden of running business.
Kymin Financial Services, an independent advisory firm based in Gwent, south Wales, has announced that it is hitting the acquisition trail in the lead up to the Retail Distribution Review with hopes of quadrupling its adviser numbers.
Gerald Davies, managing director of the firm, said there are “hundreds” of advisers, particularly those running smaller businesses, that are facing challenges when the new rules come into force but that want to continue servicing clients after the RDR comes into force.
He said Kymin would seek to acquire such firms and retain the advisers while removing the burden of running the business itself.
Kymin currently has 10 IFAs and is hoping that through its acquisition drive targeting advisers based in south Wales and specifically Gwent, it can increase this number to 40.
The firm also said it is currently enjoying a “record year” in profit terms and is currently projecting 50 per cent year-on-year growth in gross earnings, but it refused to give details on specific numbers.
Last year Kymin acquired the business of Hancock Life and Pensions, a long-established IFA based in Newport, Gwent. All of Hancock’s staff now work from Kymin’s head office, which is also in Newport.
Mr Davies said: “We are now looking for advisers who share our principles of putting the client first.
“There are many good advisers who are looking to provide a continuing high level of service after the introduction of RDR. We are happy to talk to them without any pre-conditions and in the process grow our business still further.
“Many advisers will want to go on looking after their clients but without the increasing burden of running their own business. Kymin can arrange this.
“We especially want to talk to advisers nearing retirement. Kymin has a most attractive proposition for IFAs in this position.”
IFAs looking to sell their business in the lead up to RDR and exit the industry altogether have been warned that they face having to sell at a heavily discounted price.
Speaking to FTAdviser in June, David Howell, chief executive of international IFA Guardian Wealth Management, said unless IFAs had groomed their business over several years they will not be able to sell for maximum value due to “legacy” issues.
He said: “If someone wants to exit the market now, they should have started to groom the business for an exit four years ago. You need a good lead-in time as it’s like any ‘for sale’.
“You can’t just suddenly sell a business - and this is for businesses of any size that are in any sector but particularly those in financial services.”