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Tavistock on client acquisition and recruitment drive

Tavistock on client acquisition and recruitment drive

Tavistock Investments has doubled down on its recruitment from competitors and plans to acquire books of business from advisers retiring from the industry. 

In a trading update yesterday (February 9) the company said it had embarked on a recruitment drive in recent months, with new advisers joining from rivals such as Sandringham, Quilter and Succession.

Tavistock said: "There is also a growing pipeline of others wishing to join Tavistock either as appointed representative firms or registered individuals.

"These additions are expected to make a material contribution to the company’s financial performance in future years." 

The company said it had recently entered its tenth client acquisition agreement, using its cash resources to purchase books of business from advisers who were retiring from the industry.

Tavistock said: "These books of business generate recurring income ranging from £25,000 per annum at the low end, to almost £600,000 at the high end.

"Ownership of client relationships enables the company to achieve higher margins from the provision of financial advice." 

Tavistock had seen a drop in new business levels as a result of advisers not being able to meet with clients throughout the coronavirus pandemic. 

But it still predicted its gross revenues for the financial year would be "broadly in line with last year".

Towards the end of last year the company confirmed its leadership team was "well advanced" with a business-wide reorganisation shuffle, which included the loss of both senior and junior staff. 

The cost-cutting drive was predicted to deliver more than £750,000 of annual savings and included Tavistock almost halving the number of its offices from eleven to six and moving away "from less productive areas of business activity".

Platform charges

The update came as Tavistock confirmed charges for its newly-launched platform, which it markets as low-cost.

Entry level charging on the platform, which came to market in December last year, sits at 10 bps, reducing to 5bps and 2bps for high value portfolios.

Tavistock said transitioning clients to the platform would enable it to service the "entire value chain for retail clients". 

Brian Raven, chief executive at Tavistock, said: "I am very pleased to update shareholders on so many positive developments, particularly as we approach the end of an extremely challenging financial year.

"The company is now in a strong position to accelerate its growth over the next few years and by so doing, deliver increased value to our shareholders and an enhanced service to our clients."

rachel.mortimer@ft.com