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Stop diluting value of IFA firms and hold on to clients’ assets

Stop diluting value of IFA firms and hold on to clients’ assets

Wealth managers and advisers should stop diluting the value of their businesses, Simon Chamberlain, chief executive of Succession Holdings Group, has said.

“IFAs have to retain control of clients’ assets in order to secure their place in the advice value chain,” he said.

His comments came as the financial services organisation completed its 12th acquisition as it attempts to reach £7bn of assets by the end of 2017.

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The group acquired Reading-based Finch Financial Services for £3m. The firm became a member of Succession in 2012.

Mr Chamberlain said he would continue with the acquisition of the best 50 firms by the end of 2017, with £7bn of assets from its growing membership.

He said the group’s acquisition programme was attracting “significant” interest from a new generation of ambitious IFA businesses that want to be part of a successful client-centric wealth management advisory brand.

“We have brought capital to the sector, and created opportunities for business owners and their employees to establish themselves as part of the value chain and reap the rewards of their life’s work.”

Finch was established in 1971 and is led by managing partner Paul Finch and business partner Nigel Bull.

Mr Finch said: “Being acquired by Succession ensures continued innovation, with long-term security for clients and succession planning for the team.”

Adviser View

Last week, Trevor Newham, a Cheshire-based financial adviser, announced the imminent launch of a proposition to help advisers who want to leave the sector by buying their client banks, rather than the assets and advisers.

He said: “Succession target a particular type and size of firm. However, if you look at the market place there are more firms out there with lower funds under management, which is the market we are targeting. I wish Succession well with its proposition – it is a difficult job to have on its hands, as firms can get to a certain size and things can go wrong.”