Investment and pensions group Standard Life has purchased Pearson Jones in response to growing demand for advice. The firm was acquired from Skipton Building Society for an undisclosed cash sum, subject to regulatory approval.
The move, expected to be completed in Q2 of 2015, follows a 12-year period under Skipton in which Pearson Jones has grown to offer wealth management, pensions, employee benefits and tax and trust planning. It has a total of funds under management of more than £1.1bn and 39 advisers and paraplanners in its team of 102 employees.
Standard Life announced it will be continuing to support advice firms through the development of platform technology, products and support services, which it anticipates to continue growing. Standard Life says in building its own advice service, it will help fill the gap by delivering both face-to-face and on the phone services. It will also integrate with Standard Life’s existing workplace services and will provide a “natural next step” for customers with needs that can no longer be met through guidance or self-advice.
Adrian Murphy, partner at Glasgow-based Murphy Wealth said, “This was inevitable with the big life companies looking to keep themselves relevant in an increasingly adviser-lead market. We have seen this on the cards and have been unwinding our relationships with the likes of SL.”
He added it puts Standard Life in conflict with a lot of its new advisers. “I imagine some will be happy as they look for an exit. We would not sell to Standard Life as I do not see that kind of mass market model suiting the majority of our clients.”
Martin Bamford, chartered financial planner at Surrey advisers Informed Choice, said, “An adviser owned by a product provider can never be truly independent. Regardless of the FCA definition of independence, for consumers it has as much to do with ownership and culture as it does with product selection.
“Pearson Jones advisers are going to have to disclose their new conflict of interest very clearly and ensure their clients understand what it means.”