Paradigm Group has announced it is to sell network Paradigm Financial Advisers Ltd to Caerus Capital Group, as it concentrates on its directly authorised proposition.
The deal, which is subject to FSA approval, will see Caerus assume full control of the PFA business.
The decision reflects a desire by Paradigm’s senior management to concentrate on supporting the group’s “successful and profitable” directly authorised proposition, Paradigm Partners, as well as its other growing interests, the firm said in a statement.
These interests include Paradigm Pensions, Paradigm Mortgages, recently-launched corporate wrap platform Amber, and Tatton, the group’s new investment management business, details of which were announced last week.
The new investment management business, a joint venture with Henderson Global Investors, will, according to the firm, provide a range of services and solutions at fund, model-portfolio and discretionary portfolio management level for both whole of market and restricted advisers.
Commenting on the decision to offload PFA, Paul Hogarth, founder of Paradigm, said: “The PFA network has been an important and successful part of the Paradigm Group for a number of years.
“However, over the last six months it has become clear to the team and I that the network would be better served by a business whose future is more closely aligned with this area of the market.
Caerus founder Keith Carby said: “When we struck an agreement with PFA in 2010, we made it clear that we would be seeking regulatory permissions after three years. Our desire to develop a distinctive, high quality customer experience meant this was essential.
“Paradigm’s strategic decision gives us the opportunity to make this move a few months earlier than planned.”
