Standard Life has this morning (6 February) announced the launch of a wholly-owned, UK-wide financial advice business, agreeing with Skipton Building Society to buy its Pearson Jones advisory business.
The provider stated that the move - which has been trailed by bankrolling IFA acquisitions - was in response to fundamental changes that are driving unprecedented demand for advice from customers.
The agreement with Skipton to purchase its North of England-based advisory business, which has 39 advisers and paraplanners in a team of 102 employees, is anticipated to bring assets under advice of £1.1bn.
Barry O’Dwyer, Standard Life’s managing director, praised Pearson Jones’ RDR-compliant, platform-based advisory proposition, while the firm’s managing director Tim Johnson said its management and staff were excited to help build a nationwide financial advice business.
David Cutter, Skipton Group’s chief executive, added that under new ownership, there are many potential new opportunities for the business to realise.
Steve Murray, who is currently managing director of advice, strategy and strategic investments at Standard Life, will lead the new national advice business as chief executive.
The transaction was for an undisclosed sum and is expected to complete in the second half of this year, subject to conditions being satisfied, including receipt of regulatory approvals.
In its statement, the Edinburgh-based insurer and asset manager pointed out that the new pensions freedoms and the rise of defined contribution arrangements have replaced the old defined benefit scheme certainty with flexibility.
It added this was “creating a generation of individuals that will see advice as an essential service”, adding that this means demand for advice is likely to significantly exceed supply in the face of an oft-cited advice ‘gap’.
To help fill this gap Standard Life said it is building its own UK-wide advice service, delivered face-to-face, on the phone and through digital services.
It will integrate with existing workplace and direct services by providing a natural next step for customers with needs that can no longer entirely be met through self-service or guidance.
The group noted that it will continue to support advice firms through the development of platform technology, products and support services.
“The growth of the advice business will be accelerated through the acquisition of progressive financial advice firms which align well with our operating model,” it stated, adding that this will enable Standard Life to tap into the proven expertise and professionalism in the advice market.
peter.walker@ft.com
