Bellpenny completes tenth IFA acquisition with Scottish firm

The firm’s chief executive said its acquisition of Glasgow-based IFA KM Financial Advisers would add £48m of funds under management and an additional 250 active clients to the business, in addition to further nudging Bellpenny’s overall funds under management to more than £900m.

The deal brings Bellpenny’s total adviser numbers up to 30. Kevin Ronaldson said: “We are seeing no evidence of a decline in interest and enquiries from prospective IFA sellers.

“The deal establishes a platform for further expansion in Scotland and northern England, and is another important step on our journey to become a truly UK-wide financial planning operation.”

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KM Financial Advisers has assets evenly split between pension and investment business, and was established by its former director and majority-owner Gordon Bannerman in 1999.

While many firms acquired by Bellpenny have taken on staff from the previous owners, Mr Bannerman is set to move on to new challenges after a period of consulting for Bellpenny.

He said: “Bellpenny stood out from the crowd of prospective buyers with its clear-sighted vision and unwavering focus on client interests.”

Adviser view

Raj Shah, principal of Sheffield-based Blue Wealth Management, said: “Post-RDR, a lot of advisers are struggling to convert their businesses into transparent fee-based operations, so the easy way of getting out is to sell the firm to someone like Bellpenny. But the danger is that clients get shoehorned into a restrictive advice proposition, when it isn’t suitable for them.”