Intrinsic unveils adviser buyout scheme
Intrinsic has joined the ranks of national advisory firms and networks that offer a buyout practice scheme, the network’s chief executive Richard Freeman has announced.
He said: “The practice buyout initiative will allow owners of successful financial planning firms to sell their business while ensuring their clients continue to receive a high quality of service from an adviser within the Intrinsic network.”
Now part of Old Mutual Wealth, the network will connect ARs of Intrinsic, who are seeking to sell their business, with others wanting to expand through acquisition.
There will also be loans for independent and restricted ARs, and partners at Intrinsic and Positive Solutions, who want to expand their business, and fund potential purchases of other IFA businesses within the network.
Buyers must have been ARs for at least three continuous years, while sellers must have been part of Intrinsic or Positive Solutions for at least five years, the network has said.
In 2011, the SimplyBiz Group launched a buyout scheme, which allowed exiting advisers to transfer clients to Capital Reward Plus, a non-advisory division of the group. In 2013, Sanlam UK launched a buyout service for retiring advisers and those who wanted to exit the industry.
In December, Simon Chamberlain, chief executive of Succession, revealed plans to “fund the acquisition of the best 50 firms” with £7bn of assets from the firm’s growing membership.
Worcestershire-based AFH Wealth Management offers a buyout service for advisers who want to retire, exit out industry or those who are “just fed up with working for a network”.
Adviser view
Andy Brooks, financial adviser at Peterborough-based Brooks Wealth, said: “Anything that gives advisers a way to transition while protecting clients is good.”
He added that the danger for the industry, given its lack of IFAs, would be for a monopoly or duopoly to form. “The competitive edge would be lost at the detriment to the consumer,” he said.
