Chase de Vere on acquisition trail in 2017

The Swiss Life-owned IFA has been in discussions with several IFAs, although nothing has been "signed on the dotted line" yet.

Crucially, the firms must be independent financial planning firms, not restricted, as this is the model to which Chase de Vere is committed, according to Stephen Kavanagh, chief executive for Chase de Vere.

Mr Kavanagh said: “While many other larger advice firms have chosen to give restricted advice, we remain committed to providing independent advice, which puts our clients’ interests at the forefront of everything we do."

While there "isn't a number" or a target set for how many firms Chase de Vere wishes to acquire, Patrick Connolly, chartered financial planner for Chase de Vere, commented: "We have been talking about acquisitions for nearly a year and it is definitely on the agenda for 2017."

The firm made the same claims in April 2016, when it published its 2015 report and accounts, but this year might be the one in which an acquisition is signed, sealed and delivered.

We are not acquiring for the sake of it and we do not want to gamble with one big acquisition. Patrick Connolly

Mr Connolly said: "We are in conversations with several firms and although we've not signed anything on the dotted line, we definitely hope to have something in place by the end of the year.

"We are not acquiring for the sake of it and we do not want to gamble with one big acquisition. We have 13 offices across the UK, including Scotland and Wales, and a satellite office in Northern Ireland, and so any purchase has to be the right fit and match for us."

He added the national IFA was not going to follow the path of the big consolidators; "It's better to get one that works than five that do not", he added.

Swiss Life is "supportive" of the firm's growth plans, and indications are the parent company would provide financing for any purchases where necessary.

The firm is also hoping to boost its affinity and professional relationships and grow the number of IFAs working for Chase de Vere.

Mr Kavanagh added: “I see many opportunities for further growth, including the development of existing and new affinity relationships with organisations and companies, such as our current relationship with the British Medical Association.

“We’re also looking to recruit more top quality financial advisers, to explore acquisition opportunities and we’ve committed to spending an additional £2.8m over the next five years to drive IT efficiencies and further improve the service we offer to clients."

I see many opportunities for further growth, including the development of existing and new affinity relationships with organisations and companies. Stephen Kavanagh

The tech spend, according to Mr Connolly, involves revamping and improving its back office systems. In January this year, the firm chose software provider Intelliflo to upgrade its middle, back-office and front-end systems.

However, Mr Connolly was adamant this tech development did not mark a move to "robo-advice". He explained: "We have no immediate plans for robo advice, although we would never say never. 

"We will look at our client base and if they want advice delivered a certain way, then we will adapt to this."

This comes as the firm published its 44-page annual report and accounts for the year ending 31 December 2016, reporting a rise in profits, increased revenue and greater adviser productivity.

Highlights include:

• A profit of £5.8m before tax in 2016. This was up from £5.4m in 2015 - a 6.9 per cent increase. 
• Fee income revenue increased from £50.1m to £51.8m.
• Average fee income for each adviser rose approximately 6 per cent, from £216,000 in 2015 to £245,000 in 2016, according to the report and accounts.
• In 2016, Chase de Vere concluded the programme of work associated with the 2014 FCA investigation into sales of Keydata products between August 2005 and June 2009. No more financial provisions are required.

Speaking on the results, Mr Kavanagh said: “Our 2016 performance represents another year of positive progress for Chase de Vere.

“We have achieved this while providing high quality independent financial advice and services. We’ve already started 2017 in good style, with fee income revenue in the first quarter up by 6 per cent, compared with last year.” 

Brexit is unlikely to have a significant effect on 2017 and 2018, according to the report and accounts.

The document stated: "Chase de Vere considerd the risk of immediate impact on its medium-term business model is minimal given the legalities surrounding the invoking of EU Article 50.

"Political impact is likely to be more significant than economic impact and consequently Chase deVere remains committed to its medium-term business plan."

It does not undertake business outside of the UK.

simoney.kyriakou@ft.com