A number of employees at recently acquired IFG Financial Services have been told there will be “potential redundancies”, following a company review by new owner Ascot Lloyd which revealed there are “dual personnel in two different businesses”.
Earlier this month IFG Group revealed it was paid £2.5m by Berkshire-based Ascot Lloyd Financial Services for IFG Financial Services, part of a trio of “traditional IFA businesses” sold to the company in a £9m deal earlier this year, despite it making it a loss.
Richard Dunbabin, chief executive at Ascot Lloyd, told FTAdviser it was undertaking an “evaluation” of the business and that there are a number of people in duplicate roles at both IFG Financial Services and Ascot Lloyd.
Mr Dunbabin said less than 10 people would be made redundant, though a person with knowledge of the situation claimed to be have been told the total could be higher.
Those employees affected have been warned of “potential redundancies” in a letter seen by FTAdviser, which explains there will be a “reorganisation” by Ascot Lloyd.
The letter states that the Bury St Edmunds office of IFG may “potentially” close, with employees being relocated to the company’s office in Swavesey, Cambridgeshire. This will “reduce the number of support and administration roles within the Bury and Swavesey offices”.
“The proposed closure is on the basis of costs”, the letter said. In particular, the Bury and Swavesey offices are located in close proximity and, therefore, can service the same client base.
The letter, signed by compliance manager Adam Royce, says he expects the redundancy consultation process to take place over the next four weeks.
Mr Dunbabin said: “It’s more of an evaluation. We have dual personnel in two different businesses and we have to fairly evaluate the roles.”
