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Financial Services Newsletter Friday 5th May 2023

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Financial Services News

Evelyn Partners has announced it added a record £1.7bn of gross new assets in the first quarter of 2023, up 20.3% versus last year. In a trading update, the group reported net inflows of £673m, which were 45.1% higher than the prior year. This means they grew at an annualised rate of 5.1% – a significant increase from the 3.2% reported for Q1 2022. (Lois Vallely, 26/4/2023, Money Marketing, 'Evelyn Partners delivers record £1.7bn new assets in first quarter')

​Quilter’s productivity drive looks to be paying off, as it reported the annualised gross flow per adviser had risen to £2.7m. This compares with £2.6m in the same period last year. Quilter Financial Planning’s started to focus on adviser productivity at the beginning of 2021. This caused 141 Restricted Advisers to depart the business in the first six months. (Lois Vallely, 25/4/2023, Money Marketing, 'Quilter’s ‘productivity drive’ pays off as adviser efficiency rises')

​Edinburgh-based independent financial advice firm Calton Wealth Management is gearing up to double in size over the next six months. The firm’s strategic plan has identified the need to increase personnel across the business as its client base continues to grow naturally, along with an ambitious acquisition programme. The business recently made two key appointments, with plans to recruit more new advisers and at least three new support staff in the near future. (Lois Vallely, 6/4/2023, Money Marketing, 'IFA Calton Wealth kicks off ambitious growth drive')

​Consolidator Ascot Lloyd has become the latest to launch its own adviser academy – Pathway to IFA. The academy recruits individuals who are looking to start a career in financial planning and advice. The academy will recruit individuals from a wide pool. It will target university graduates, people already in the industry who wish to progress their career, and those wishing to embark on a second career or return to work after a career break. (Lois Vallely, 18/4/2023, Money Marketing, 'Ascot Lloyd launches its own adviser academy')

​Funds at Tatton Asset Management rose by nearly a quarter in the year to the end of March, driven by inflows from advice businesses joining the platform. In an unaudited stock market update, the group reported it drew a record £1.79bn in organic net inflows during the year, up 40.5% from £1.27bn in the prior year. The inflows were 71.5% above the firm’s five-year average of £1.05bn. The inflows drove a 22.3% rise in total assets under management to £13.8bn, up from £11.3bn at the end of March 2022. This was despite market performance taking a £400m toll on assets. (Robin Amos, 18/4/2023, Citywire Wealth Manager, 'Tatton assets surge 22% on record £1.8bn annual inflows')

Rathbones saw a modest inflow and rise in assets under management (AUM), in its first trading update since its Investec W&I deal was announced. AUM hit £60.9bn at the end of March, a 1.1% increase from £60.2bn at the end of December. This figure remains down 6% year-on-year. Positive market movements amounted to a £700m uplift, while net inflows into its wealth business totalled £303m. (John Schaffer, 4/5/2023, Citywire Wealth Manager, 'Rathbones hopes for Investec W&I boost after flat quarter')

The FCA has imposed restrictions on a London wealth manager CFS Management Ltd over concerns that millions of pounds of client and firm money was being held in the same accounts. CFS has been barred by the FCA from accepting any new client money or new custody assets, from either existing or new clients, in any of its business areas. In a First Supervisory Notice, the FCA says it believes the firm may have been failing to properly segregate over £10m of client and firm money. (Financial Planning Today, 21/4/2023, Financial Planning Today, 'FCA restricts London wealth manager')

The Chartered Insurance Institute has promised to increase the autonomy of its Personal Finance Society arm in its five-year plan published. The CII has also promised to fix its long-running technology issues. The five-year plan also recognises the financial issues faced by the CII and outlines plans to return to a “surplus position”. The plan was released after feedback to its 2021 Shaping the Future Together consultation. (Financial Planning Today, 20/4/2023, Financial Planning Today, 'CII pledges more autonomy for PFS arm')

Andrew Croft, the CEO of wealth management giant St James’s Place (SJP), is hoping for a ‘more supportive environment’ for new business this year after a difficult 12 months for assets and flows.  In a trading update, SJP said its assets under management grew slightly year-on-year, from £151.2bn on 31 March 2022 to £153.6bn at the end of Q1 this year. Net inflows at the wealth manager hit £2bn in three months to 31 March, down from the £2.91bn during the same time last year. After years of hitting retention targets, SJP’s asset retention levels dipped slightly in Q1 from 96.6% to 95.9%. (James Fitzgerald, 27/4/2023, Citywire Wealth Manager, 'SJP shares drop 4% after Q1 flows stall')

Mergers & Acquisitions

​Wimbledon-based Chartered Financial Planning firm Holborn Financial has acquired the business of retiring IFA Gary Cook, principal of Gary Cook Financial Services of Maidstone, Kent. The deal is for an undisclosed sum and is the second for expanding Holborn. Gary Cook Financial Services works with 40 families and has approximately £10m in AUM. (Financial Planning Today, 21/4/2023, Financial Planning Today, 'Chartered Planner acquires Kent IFA firm')

In further news...Holborn Financial also acquired Kingsley Financial Management of Whitchurch on 6 April. Holborn Financial Managing Director and Founder Emyr Blease, said the aim of the business is to “expand in a measured and cautious way”. (Lois Vallely, 21/4/2023, Money Marketing, 'Holborn Financial makes second IFA purchase this month')

SIPP provider and wealth manager Mattioli Woods has acquired Northern Ireland Financial Planner Doherty Pension & Investment Consultancy for £15.048m. Doherty's is one of Northern Ireland’s biggest Financial Planners and wealth managers with 1,320 private clients and £635m in Assets Under Management. The firm has a major presence in Belfast and employs 28 staff. The management team will be retained by Mattioli Woods following the deal. (Financial Planning Today, 20/4/2023, Financial Planning Today, 'Mattioli buys Northern Ireland Planner for £15m')

Evelyn Partners has acquired Ashcroft Partnership, an accountancy firm based in central Cambridge. Evelyn’s Chief Professional Services Director Andrew Wilkes said the acquisition comes as part of the wealth management group’s bid to expand in the East of England. Ashcroft Partnership hosts a 40-person team of Chartered Accountants and Tax Specialists offering assurance, corporate finance, business, and personal tax services. (Olivia Bybel, 3/4/2023, Citywire Wealth Manager, 'Evelyn Partners acquires Cambridge accountancy firm')


​Schroders’ Chief Financial Officer (CFO) Richard Keers is retiring after a decade, as well as giving up his seat as a Director on the FTSE 100 asset manager’s board. Prior to Schroders, Keers was an Accountant and Senior Audit Partner at PricewaterhouseCoopers (PwC). He will be replaced as CFO by Richard Oldfield in early October, who also joins from a background at PwC. Oldfield is currently Vice Chairman and Global Markets Leader at the big four accounting firm, leading market-facing initiatives and strategy. He was previously a member of PwC’s UK executive board for five years. (Jeremy Gordon, 27/4/2023, Citywire Wealth Manager, 'Schroders CFO and director retires after a decade')

​Close Brothers Asset Management (CBAM) has hired another Investec Wealth & Investment Director. Charles Purves joins CBAM’s Cheltenham office after 15 years at Investec, where he provided bespoke equity and bond portfolio solutions for private clients, charities, and family trusts. In his new role, Purves will provide a bespoke discretionary investment management service, managing client relationships across the region. (Caroline Hug, 24/4/2023, Citywire Wealth Manager, 'Another Investec W&I veteran joins Close Brothers')

In further news...Close Brothers Asset Management (CBAM) has appointed Ed Mawle as Investment Director. Mawle joined Investec Wealth and Investment in 2017 and left in April. Previously, he spent 19 years at Brewin Dolphin, most recently as Divisional Director in Cheltenham.(Olivia Bybel, 2/5/2023, Citywire Wealth Manager, 'CBAM hires another Investec leaver as investment director')

JM Finn has appointed Danny Szabo as an Investment Manager from rival Atomos. Szabo worked at Atomos for close to five years in London as a Portfolio Manager. Prior to that he spent just over a year at venture capital-focused firm Oxford Capital, and had a four-year stint at Evelyn Partners, where he was Head of Relationship Management. (John Schaffer, 18/4/2023, Citywire Wealth Manager, 'JM Finn hires Atomos portfolio manager')

​Charles Stanley has made two senior hires across its Tunbridge Wells and Manchester offices. Tom Planterose is added to the firm’s Tunbridge Wells office as Senior Investment Manager, while Paul Pugh joins as Business Development Manager in the North. Planterose joins the office in Kent after almost a decade at Atomos. In his former position, he was a Senior Portfolio Manager responsible for building investment solutions for private clients, families, trusts, and charities. Pugh joins after a year at AJ Bell as Head of Strategic Partnerships. In this role, he worked closely with ratings agencies, national IFA groups and networks. He has more than 24 years of experience in the industry, having started his career as a financial adviser in 1999. (Caroline Hug, 18/4/2023, Citywire Wealth Manager, 'Charles Stanley makes senior hires from Atomos and AJ Bell')

​Evelyn Partners has appointed a Financial Planning Director to its Edinburgh office. Duncan Arthur joins the firm from Blackadders Wealth Management in Dundee, where he was Director of Financial Planning and worked for more than five and a half years. (Robin Amos, 5/4/2023, Citywire Wealth Manager, 'Evelyn hires financial planning director to Edinburgh office')

​Royal London has appointed Ronnie Binnie as Head of Strategic Partnerships. He joins from Evelyn Partners, where he was Managing Partner and Head of Office for Edinburgh and Aberdeen. He joins the distribution leadership team and will play a key role in strengthening the relationship with strategic partners to create opportunities to engage and bring valued insight into the business. (Lois Vallely, 26/4/2023, Money Marketing, 'Royal London recruits head of partnerships from Evelyn Partners')

Old Mill has appointed a new Head of Wealth Management as it aims to become the south west’s fastest-growing financial planning and accountancy firm. Amanda Browning has joined from Evelyn Partners, where she was responsible for the integration of the wealth management teams from the merger of Tilney and Smith & Williamson in 2020 (Tilney Smith & Williamson later rebranded to Evelyn Partners in June 2022). Browning started her career as a Cashier at Lloyds, and over the past 25 years has held senior roles at Coutts and Rathbones Group. (Elizabeth Anderson, 20/4/2023, Money Marketing, 'Old Mill appoints Amanda Browning as head of wealth management')

Nucleus Financial Platforms has appointed a new Chief Risk Officer as the company steps up plans to create the UK’s leading retirement-focused adviser platform. Justin Tovey joins from River and Mercantile Group, where he has been Chief Risk Officer (CRO) for the past four years. Previously, he held senior roles at Old Mutual Wealth, PWC, and Lloyds Banking Group. (Elizabeth Anderson, 20/4/2023, Money Marketing, 'Nucleus appoints new chief risk officer Justin Tovey')

​St James’s Place (SJP) has appointed Justin Onuekwusi to the role of Chief Investment Officer (CIO). Onuekwusi has more than 20 years of experience in the investment management industry. He recently worked as Head of Retail Investments, EMEA and Head of Retail Multi-Asset Funds at Legal & General Investment Management. (Lois Vallely, 13/4/2023, Money Marketing, 'SJP names new chief investment officer')

​Wealth manager Atomos has appointed Jon Taylor as chair. He takes over from Alison Endemano, who held the role of Chair since Oaktree Capital Management invested in Atomos in May 2022. Taylor previously sat as a Non-Executive Director on the board. He is an experienced Executive and Non-Executive Director, who has held several senior management roles within financial services. (Lois Vallely, 3/4/2023, Money Marketing, 'Atomos names former Ascentric CEO as chair')

LGT Wealth Management has hired William James as a Portfolio Manager within its Intermediary Investment Services team (IIS). James joins the business from Square Mile Investment Consulting & Research, where he was an Investment Manager. (Robin Amos, 2/5/2023, Citywire Wealth Manager, 'LGT Wealth Management hires portfolio manager from Square Mile')

National advice firm Succession Wealth has seen a raft of its top planners heading for the exit, with around 20 leaving the business since November. Many of the departing advisers are those who sold their IFAs to Succession and finally received a pay-out for their shares last August when Succession was acquired by Aviva for £385m. Analysis of the FCA register shows that 21 advisers are, since November, no longer authorised as Succession advisers and are no longer FCA-registered individuals. (Nicola Blackburn, 31/3/2023, Citywire Wealth Manager, '20 planners leave Succession after share payouts'

Canaccord Genuity Wealth Management (CGWM) has promoted Duncan Stratford to the newly created role of Managing Director of its UK business. In this role, Stratford will be responsible for CGWM’s UK investment management and wealth planning divisions. He has spent over 20 years at the firm, most recently as Head of the UK Front Office, and was involved in the integrations of Hargreave Hale, McCarthy Taylor, Thomas Miller, Adam & Company and, most recently, Punter Southall Wealth into the firm. (Christopher Johnson, 31/3/2023, Citywire Wealth Manager, 'CGWM creates UK managing director role for firm veteran')

All information provided in this Market Digest has been gathered from Money Marketing, Financial Planning Today and Citywire Wealth Manager.