‘We are in a really good place now – 2016 has been our best quarter for 10 years’

Stephen Kavanagh, was appointed to the role of chief executive in 2010 – less than two years after the national adviser firm was hit with a £1.12m for mis-selling some pension transfer, pension annuity and income withdrawal business.

The case involved around 800 customers who already had adequate pension provisions and whose attitude to risk did not match the products recommended to them.

But the troubles did not stop there. The company, which is owned by the Swiss Life Group, was also fined £560,000 by the Financial Conduct Authority for misconduct related to the sales of Keydata products between August 2005 and June 2009.

Then Chase de Vere’s financial statements for 2014 revealed that the firm had conducted a review into customers who purchased Keydata products, which led to £440,000 being put aside for customers in case the clients affected need redress.

Mr Kavanagh said: “A lot of people have been interested [in these cases] in the past, but that is what it is: the past. When I was offered the job back in 2010, I wanted to take it having been an adviser in the company.”

He added: “We are in a really good place now. We are looking forward to the next three years and 2016 has been our best quarter for 10 years.”

Things have indeed picked up for the firm. Mr Kavanagh revealed that the company posted around £5.5m of profits for the year ending 31 December 2015 – up from £3.1m from 2014.

He said the hike in profits is partly attributed to the increase in productivity following a cut in the number of clients that any one adviser can service, from 200 to 150 over the past 12 months.

Mr Kavanagh said. “We recognised that in order to provide the best service, you need time. We have also seen an increase in the number of referrals because our advisers have had more time with clients to be able to ask for referrals from clients.”

Mr Kavanagh is somewhat boastful of the fact that, unlike the majority of its fiercest rivals, the company operates an independent model and is not vertically integrated, (controlling its own advice platform and fund management activities).

“Wedded to independence” was a recurring phrase used by Mr Kavanagh to describe the firm’s philosophy when it comes to the financial advice process.

He claims IFA firms that sells its own products compromises its independence status and are unable to provide completely unbiased advice to customers because of an underlying pressure to promote its own solutions.

Mr Kavanagh said: “We think it must be good for companies like St James’s Place and Towry in terms of being able to sell their own products, but the question is whether it is good for clients. It can’t be. It is better going to an independent whole-of-market adviser.”

“You would have thought there would be some pressure on us to develop our own products because we are part of Swiss Life, but there is none – we have a terrific relationship with our parent company.”

However, Mr Kavanagh predicts a proliferation of adviser firms that will switch to the restricted model because of the capital cost of the due diligence process coupled with the pressures of heightened regulatory scrutiny post Retail Distribution Review.

Early this year, the company unveiled plans to swell its adviser ranks through the acquisition of firms and by increasing its recruitment drive. Mr Kavanagh earmarked Birmingham and Manchester as strategic hotspots for expansion.

He said the firm will target independent advisers who may be contemplating leaving the industry following the sunset clause, which means advisers can no longer receive commission for assets held on platforms.

Mr Kavanagh added: “We want to be in the marketplace of acquiring firms that want to remain independent. We want firms that put their clients at the centre of everything they do. We believe the service we provide for our clients has been gold standard.

“The best advisers want to work for firms where they give independent financial advice rather than restricted product sales-focused advice.”

No strict budget has been allocated to the expansion strategy, according to Mr Kavanagh, who added: “I have received reassurances from my boss Nils Frowein [chief executive of International at Swiss Life International] that we should not shy away of making a major acquisition.”

The IFA firm has also implemented a framework designed to bolster adviser numbers organically by facilitating the professional development of its team of around 45 paraplanners.

Chase de Vere aims to maintain the upward trend when it comes to the company’s finances through a number of initiatives, including the recent launch of its new and improved corporate advice proposition for employers approaching their automatic enrolment staging date, which now incorporates the full range of employee benefits.

Mr Kavanagh said: “[Corporate advice] is a huge growth area. We never had a clearly defined proposition, but now we have a full array of solutions. Sean [Sweeney, the firm’s corporate advice manager], has done an excellent job on this front.”

STEPHEN’S KAVANAGH’S CAREER LADDER

2010-present – Chief executive, Chase de Vere

2006-2010 – National sales director, Chase de Vere

2004-2006 – Regional sales director, Chase de Vere

1997-2004 – IFA, Chase de Vere (previously Thomson’s Financial Planning)

1992-1997 – Independent financial adviser, Allied Irish Bank

1985-1992 – Private client portfolio manager, Bank of Scotland