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Attivo creates easy-exit strategy for IFA firms

The chief executive of Attivo Group, which was first founded 15 years ago under the name Fountain Independent, said the service would allow business owners who want to leave the industry but who want their clients to remain being serviced, an ‘appointed rep extension’.

He explained that this option, which forms part of the group’s acquisition strategy, would help those firms that want to continue servicing clients and building their assets but are seeking to exit within a two- to five-year window.

On joining Attivo and becoming an AR, the firm would benefit from Attivo’s help in growing its business, with the group buying out the firm when it was ready to exit.

Mr Harper said: “We can offer firms like this a solid support structure with our own investment platform, discretionary fund management, self-invested personal pension and small self-administered scheme offering, as well as regulatory support and the other normal services most networks provide.

“The big difference for us is that we want to support the growth of their businesses so that in the next few years we can work with them to acquire the business outright and ensure they get maximum value.”

Mr Harper added that while many adviser organisations wanted to consolidate, he believed some of the “big-name players” have increased their entrance criteria so much they are leaving firms with less than £100m funds under management “out in the cold”.

Adviser view

Tony Catt, compliance officer at Anthony Catt, said: “It should be a win-win situation as it gives firms an exit strategy to retire, and builds up Attivo. It’s a clever bit of marketing as keeping advisers on board, means more business remains on the books, and gives handover when an adviser leaves a business. It’s not a dreadful option.

“It’s been described as a land grab: large advisers buying up small firms, building up AUM and such like. Lot of people are doing it and I am sure Attivo is competitive. What it seems to be offering is decent.”