Using technology to steamline the back office has led to Fairstone having one member of staff supporting 10 advisers, the company’s chief executive has said.
Lee Hartley said he did not see robo-advice being a “mainstream” way of offering advice but said the Newcastle-based company has used technology to recruit clients and streamline its back office.
He said: “In our back office we have consolidated case management, administration and paraplanning functions that support an adviser business across the UK.
“We can have one member of back office staff supporting 10 financial advisers, whereas in the industry it is normally two to one.
“I don’t see robo-advice as being a mainstream way of conducting significant investment or pension business - I see it more for on going servicing of clients.
“We have plans for robo-advice, complementing what we do, but these are for two years into the future.”
Last year Fairstone appointed Richard Mein, Michael Archibald and Paul Johnson to establish a second team in Edinburgh, building on the company’s existing offices in Dundee, Glasgow and Fife.
Mr Hartley said the company had approximately 245 advisers on board at the end of 2015; in November this stood at roughly 230 advisers.
He said: “Next year I would say we want to continue on the same trajectory we are on, so eight to 10 new deals.
“That would mean we were growing our adviser revenue by around £10m and we want to maintain that growth over the next 10 years.
“Our model is attractive to smaller, younger businesses that want to realise the capital value of the business in the future waiting to exit the market.
“The average age of firm principals with whom we work is 47, which is 11 years younger than the industry average.”
Mr Hartley said that to encourage younger blood into the market his company has formed a relationship with Newcastle Business School at Northumbria University which offers a finance and investment management course.
He said the company has taken between four and six graduates a year from the course, which he would like to increase in the future.
Background box
Fairstone Group was formed as Moneygate in 2007 and now has revenues of nearly £30m.
It rebranded to Fairstone earlier this year and is headquartered in Newcastle upon Tyne with regional offices in London and Bristol.
Since 2011 the firm has incorporated 34 businesses. It has £5.7bn of funds under advice with £2.4bn of funds under management.
