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Financial Services Newsletter - Friday 28th October 2022

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Financial Services News

Paul Killik banked £7.1m last year as business boomed ahead of the crash in late February. The take-home – a near 25% bump from £5.3m in the year before – came as profit before tax in the year to March, and the total distributed to the partners and employees, rose 16% to £20.5m. Client assets rose 9.5% over the year from £7.4bn to £8.1bn on inflows of £452m, which were 30% higher than the £346m it took in the previous 12 months. (David Campbell, 24/10/2022, City Wire Wealth Manager, 'Paul Killik banked £7.1m as business boomed ahead of March crash')

Hargreaves Lansdown (HL) has been hit by a lawsuit on behalf of investors in the collapsed Woodford Equity Income fund. RGL Management is seeking a multi-million pound compensation payout from the online brokerage and fund administrator Link Fund Solutions (LFS) in a lawsuit filed in the High Court. (John Schaffer, 17/10/2022, City Wire Wealth Manager, 'Hargreaves Lansdown hit by Woodford lawsuit')

Columbia Threadneedle is suspending dealing on two UK open-ended Property funds after gating a similar strategy for Pension investors last week. The £453m CT UK Property Authorised Investment fund (CT UK PAIF) and its feeder fund, the CT UK Property Authorised Trust, was suspended on the 12th October. (John Schaffer, 12/10/2022, City Wire Wealth Manager, 'Columbia Threadneedle gates more UK property funds')

Mergers & Acquisitions

Amber River, the IFA consolidator founded by Openwork’s former Chief Executive, is set to close at least three more regional IFA deals before the end of 2022, taking the number of larger advice firms it has acquired so far to 14. Previously known as The Socium Group, Amber River is backed by private equity firm Penta Capital and began buying firms in 2019. This year, it has bought five advice firms - four of which have been ‘regional hubs’ - including a Cheltenham-based firm in March which took assets to £6.7bn. (Ruby Hinchliffe, 10/10/2022, FT Adviser, 'PE-backed Amber River targets 250 advisers by year end')

​Wealth Manager and Financial Planner Succession Wealth -recently bought by Aviva for £385m - has acquired £800m AUA Yorkshire-based Financial Planner G+E Wealth Management for an undisclosed sum. Succession says the deal provides an “important expansion” for Succession Wealth in the north of England and it is planning further acquisitions of “high quality” Financial Planning firms nationwide. (Financial Planning Today, 05/10/2022, 'Succession acquires £800m AUA Planner firm')

Coutts has been left with a significant pool of less wealthy Adam & Co banking clients following Canaccord Genuity’s purchase of its investment arm. After the £54m deal took place, Adam & Co’s banking clients were transferred over to Coutts. The issue for Coutts is that Adam & Co had not set a minimum banking amount - in stark contrast to the minimum £1m entry point for Coutts clients. (John Schaffer, 25/10/2022, City Wire Wealth Manager, 'Coutts relaxes £1m threshold to cater for Adam clients')

Broker Panmure Gordon has formally offered a bid for rival small cap specialist FinnCap the latter company has said, in the latest sign of the financial stress impacting the sector. The deal could be either structured as a cash buyout or as an equity swap, it noted. ‘Discussions between the company and Panmure Gordon are still at an early stage,’ it said in a statement. (David Campbell, 18/10/2022, City Wire Wealth Manager, 'Panmure Gordon launches bid for small cap broker rival')

Signia Wealth will rebrand to Arbion following the management buyout of the business from the British business tycoon and Phones 4u Founder John Caudwell. Chief Executive Carnegie Smyth and his business partner Greg Malone said they would launch a restructure to accompany the rebrand. In a statement, Smyth said the overhaul would enable the business ‘to operate more effectively’. (Christopher Johnson, 19/10/2022, City Wire Wealth Manager, 'Schroders Personal Wealth hires Barclays head of tech')

Private equity-backed Advanta Solutions has bought three firms in Scotland, adding £100mn in assets under management. The chartered firm has bought North Ayrshire-based SMG Financial Options, Perth and Kinross-based Ann Bellingham Financial Services and Renfrewshire-based M&I Independent Financial Services. Advanta said the three deals now contribute to its footprint in Scotland and add to the existing business based in Glasgow. (Jane Matthews, 17/10/2022, FT Adviser, 'Advanta adds £150mn to AUM with purchase of fourth firm')

Advanta Solutions has added a further £150mn to its assets under management with its fourth purchase this year. The chartered firm has acquired Genesis Financial Planning, a London based advice firm for an undisclosed amount. Advanta Chief Executive, Craig Webster said: “Our strategy of growing a financial planning and wealth management business fit for the future and focused on the needs of multiple generations of clients makes Genesis an ideal fit for Advanta."(Sonia Rach, 14/10/2022, FT Adviser, 'Advanta Solutions buys three Scottish firms')

Clifton Asset Management has bought Caerphilly-based Financial Adviser Mark Philips Ltd, taking its assets under management to more than £1bn. As part of the deal, more than 250 clients with AUM of £40mn will move over to Clifton AM. (Sonia Rach, 10/10/2022, FT Adviser, 'Clifton AM passes £1bn AUM with adviser purchase')

Wren Sterling has added more than £250mn to its assets under management with the purchase of HB&O Financial Services. The purchase is the third acquisition of the year by Wren Sterling as it moves to strengthen its regional presence beyond its existing operations in Warwick. Based in Leamington Spa, HB&O is a chartered firm with over 850 clients. (Jane Matthews, 6/10/2022, FT Adviser, 'Wren Sterling adds £250mn with adviser purchase')

South-east financial planning company GSI Group has bought its first firm, as part of its plans to move towards a portfolio valued at £1bn within five years. Oakfield Financial Consultants, the firm GSI Group purchased, is based in Hampshire and has a wide range of financial support and advice services including full financial planning and mortgages. (Sonia Rach, 27/10/2022, FT Adviser, 'Westerham-based financial planning company buys first firm')

Movers & Shakers

​Schroders Personal Wealth (SPW) has hired five veteran Financial Advisers to support a regional growth drive, with Makala Green among them. Green joins as a Personal Wealth Adviser from St James’s Place (SJP), where she ran the Green Wealth Planning office for seven years. SPW is also hiring Elaine Porter, Paul Innocent and Neil Whiteside in similar roles in the Northwest. Michael Hart joins in North Wales. Porter, who will cover Chester and Wirral, previously held roles at Prudential, NatWest and Nationwide. Innocent brings more than 17 years’ experience in complex financial planning advice, including at Axa, Wesleyan and Wealth at Work. He will cover Blackpool and Fylde Coast. Hart was hired from HSBC, where he has spent the past eight years dealing with high-net-worth clients. He previously spent eight years at Santander covering North Wales. (Robin Amos, 25/10/2022, City Wire Wealth Manager, 'Schroders Personal Wealth hires Makala Green in growth drive')

In further news...Schroders Personal Wealth has recruited Barclays Head of Tech and Operations Graham Bastin, in a major hire intended to help boost its digital infrastructure. Bastin will join as Chief Technology Officer next month, reporting to company Chief Executive Mark Duckworth. Bastin spent over 16 years at Barclays, holding several Managing Director roles within group technology. (Christopher Johnson 19/10/2022, City Wire Wealth Manager, 'Schroders Personal Wealth hires Barclays head of tech')

Robin Newbould, who co-founded Ravenscroft in 2005 alongside Jon Ravenscroft, has been appointed to the board of its parent company Ravenscroft Holdings Limited. He rejoined the business as Chief Operating Officer in July 2021, but will now join on the board as the Managing Director of Operations. (Christopher Johnson 21/10/2022, City Wire Wealth Manager, 'Ravenscroft co-founder rejoins board in management shake-up')

RBC Brewin Dolphin has hired GAM Head of Wealth Management Joss Mitchell to serve in its St. James’s-based high net worth tax and estate planning business 1762. Mitchell, who joins as Divisional Director and Wealth Director, had worked at GAM since early 2018, initially as a Client Director, before rising to the top role in late 2019. (David Campbell, 21/10/2022, City Wire Wealth Manager, 'RBC Brewin Dolphin taps GAM wealth boss for UHNW division')

Charles Stanley has appointed Tom Hawkins as Head of Strategic Partnerships in its London office. Hawkins joins the firm after almost three years at Quilter, where he was as Business Development Manager, working with IFA firms across the UK. (Charlotte Hug, 20/10/2022, City Wire Wealth Manager, 'Charles Stanley hires head of strategic partnerships from Quilter')

Cazenove has hired Kleinwort Hambros Director and Head of Philanthropy Rebecca Constable as a Portfolio Director in the Thames Valley region. Constable joined Kleinwort via its 2017 merger with Société Générale Private Banking, where she spent eight years, rising to become a Director of Private Banking.(David Campbell, 18/10/2022, City Wire Wealth Manager, 'Cazenove hires Kleinwort Hambros head of philanthropy')

​While Chris Hill was under intense pressure, news he is standing down as Hargreaves Lansdown CEO comes as a big surprise. The fund platform announced this morning he would be relinquishing the top job after six years at the helm. He will remain in the post until November 2023, giving the firm ample time to find a suitable successor. (Dylan Lobo, 17/10/2022, City Wire Wealth Manager, 'Chris Hill’s surprise exit increases stress for Hargreaves')

​Paul Feeney is to step down as Chief Executive of Quilter after a decade leading the business. He will hand the reins to Steven Levin, who has led the firm’s investment platform and Quilter Investors for the last five years. (Dylan Lobo, 10/10/2022, City Wire Wealth Manager, 'Paul Feeney steps down as Quilter CEO')

JM Finn veteran James Edgedale has joined Church House Investments (CHI). Edgedale, who was Chair of JM Finn when he left the firm after 37 years in July 2021, joins the wealth and investment manager as a Client Director. (Dylan Lobo, 11/10/2022, City Wire Wealth Manager, 'Revealed: Church House hires JM Finn veteran James Edgedale')

Evelyn Partners has expanded its presence in the Southeast, with the appointment of Finn Quinn as Investment Manager. Quinn joins Evelyn’s Thames Valley team in Bracknell, after seven years at Brooks Macdonald, where he worked as Investment Manager. (Caroline Hug, 13/10/2022, City Wire Wealth Manager, 'Evelyn hires Brooks Macdonald veteran for Southeast push')

In further news...Evelyn Partners has made four marketing and commercial hires to revamp its retail investing platform Bestinvest. Oliver Plant has been appointed the Head of Bestinvest, following his work to transform the investment platform into a hybrid proposition. Martin Pezet joins after spending six years developing AJ Bell’s Youinvest platform and will focus on growing the platform’s client base. Louise Revell joins as Head of Proposition from global management consulting firm Oliver Wyman, where she spent over five years. Will Pointing has been appointed Partnerships, Performance and Pricing Manager, having previously worked at NewDay, WPP and MoneySuperMarket.(Christopher Johnson, 12/10/2022, City Wire Wealth Manager, 'Evelyn Partners adds series of hires for Bestinvest relaunch')

Kingswood has appointed two former robo-advice bosses, Gemma Godfrey and Jane Millar, as Non-Executive Directors. Godfrey, who was the Founder of closed robo-adviser Moola, holds positions on several boards, including Oberon Investment, which she joined in September 2021. Millar was previously Chief Executive of Investec Click & Invest, which was scrapped in May 2019, just two years after its launch. (John Schaffer, 13/10/2022, City Wire Wealth Manager, 'Kingswood adds Gemma Godfrey and ex-Investec robo boss to board')

Katherine Davidson has joined UK investment house Baillie Gifford after leaving Schroders earlier this year. Davidson, dropped $3bn (£2.7bn) worth of sustainability strategies when she announced the end of her 14-year stint with Schroders. She will now co-run the Edinburgh-based group’s Global Stewardship fund, currently overseen by Toby Ross.(Chris Sloley, 12/10/2022, City Wire Wealth Manager, 'Ex-Schroders PM joins Baillie Gifford to co-run sustainability fund')

Artorius has bolstered its wealth planning and lending teams with two new hires. Kausar Sahab and Ray Keatley join the firm as Wealth Planner and Lending Partner, respectively. Sahab has more than 20 years’ experience in the industry. Starting her career in Mauritius at the Ministry of Finance, she later at Booth Wealth Management and Helm Godfrey Partners. Ray Keatley joins the firm as Lending Partner after almost nine years at Handelsbanken, where he worked as a Private Banking Manager, managing and developing a diverse portfolio of clients.(Caroline Hug, 12/10/2022, City Wire Wealth Manager, 'Artorius appoints former SJP adviser in double hire')

Downing has hired M&G Head of Restructuring Paul Taylor to launch a private market strategy for institutional investors. Taylor joined Downing in May following 15 years at M&G, where he was the Lead Portfolio Manager for the M&G Debt Opportunities fund and the M&G Folios funds. (Christopher Johnson, 12/10/2022, City Wire Wealth Manager, 'Downing hires M&G restructuring boss to launch private market funds')

The Director of Private Clients for Scotland at Seven Investment Management (7IM), Zane Hunter, is leaving the Wealth Manager. Hunter worked at 7IM for three years, according to his LinkedIn profile. He joined as Head of Business Delivery for the Investment Manager’s private clients business before being appointed to lead Scotland in January. (Nicola Blackburn, 11/10/2022, City Wire Wealth Manager, '7IM Scottish private client director steps down')

Rathbones has appointed a specialist in Discretionary Fund Managers (DFMs) to its distribution team. Marie Lawrence joins from Charles Stanley and will be responsible for building relationships in Winchester and Chichester. (Christopher Johnson, 6/10/2022, City Wire Wealth Manager, 'Rathbones poaches from Charles Stanley for DFM sales push')

​Software provider Target Group has announced that Kathy Griffin will be joining as Chief Risk Officer, starting immediately. Griffin joins from UK fintech Monzo, where she held the position of Director of Compliance for the past 18 months. (Lois Vallely, 26/10/2022, money marketing, 'Target hires Monzo’s compliance head as chief risk officer')

Quilter has created a new proposition specialist team to extend its support for Financial Advisers. The new 17-strong team is led by Head of Proposition Specialists Roddy Munro. He is an industry veteran with 30 years’ experience of supporting adviser businesses in complex areas. The team also includes Rachael Griffin as Head of Tax and Trusts, and Jon Greer as Head of Retirement. (Lois Vallely, 21/10/2022, money marketing, ''Quilter sets up specialist team to support advisers')

All information provided in this Market Digest has been gathered from City Wire Wealth Manager, Financial Planning Today, FT Adviser and money marketing.