A discretionary investment manager has launched an adviser network which provides a range of perks for advice firms, from professional indemnity cover to capped Financial Services Compensation Scheme fees.
RC Brown announced today (August 6) it had launched the network, which offers IFAs both an appointed representative and 'white label' option, in a bid to create a cheaper, technology-led and more structured way of developing IFA businesses.
It said it hoped the network would appeal to like-minded advisers who eventually want to sell their firm or acquire other advice businesses, as companies within the group would have compatible systems and could thus overcome many of the hurdles of mergers and acquisitions.
Alan Beaney, chief executive of RC Brown, said: “We have deliberately created an entity where advisers will all use the same tech-led systems and have brought in carefully selected expertise, so everyone benefits from consistency and economies of scale.
“This also means that firms can network with others within the group knowing that many of the hurdles of transferring business have been removed, with the added advantage that clients are familiar with systems.”
Advisers can become an AR of RC Brown for 10 per cent of turnover and 80bps for DFM and platform services.
Firms looking to become an AR will need a minimum of £15m assets under management and at least £110,000 annual turnover, but will remain fully independent and free to choose any product provider partners.
ARs of RC Brown will gain access to the firm's back office CRM, administrative help, fee collection, PI insurance, a capped level of FSCS fees and compliance services included in the deal.
RC Brown also offers a ‘white label only’ option for a set up charge of £5,000, plus 80bps for full DFM and platform charges.
Under this option, advisers trade as a subsidiary of RC Brown but have limited access to perks.
Mr Beaney added: “We are offering a portfolio of options to cater for advisers across the spectrum but anticipate that these services should particularly suit newer or smaller IFAs as we offer a safe environment with additional structure and support where all the systems are in one place.
“We have very much aimed to eliminate the distractions of setting up, so back office systems are on the shelf and ready waiting.
“This service should also provide a helping hand to advisers who are eyeing retirement and would like to put their house in order and then perhaps forge links with like-minded firms.”
Mr Beaney said RC Brown was “not in the business of being an IFA” and that launching the service was ultimately a way of increasing its own funds under management.
He added: “We are targeting advisers who opt in to remain independent but at the same time encouraging them to invest with RC Brown.
“At the end of the day it’s simply RC Brown behind the scenes and if they don’t wish to invest with us then we can just administer assets for them like a platform does.”
imogen.tew@ft.com
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