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Financial Services Newsletter - Friday 23rd November 2018

23 Nov 2018

Market News

Punter Southall Aspire, the investment and workplace pensions business, has acquired JDP Financial Services, a firm of independent Chartered Financial Planners based in Bedford, for an undisclosed sum. The move will help spur growth at Punter Southall Aspire’s growing Financial Planning arm and is part of its strategy to build a nationwide presence in Financial Planning. It is the second Adviser firm Punter Southall Aspire has acquired in 2018. It acquired IFA Focus Oxford in June and Punter says it plans to acquire other firms to build a “national personal Financial Planning business.” The JDP acquisition will see three experienced Chartered Financial Planners joining PSA.

A rapidly growing Cardiff-based Chartered Financial Planning Firm has revealed plans to more than double its staff from 36 to 76 over the next two years as it gears up for further growth. Bartholomew Hawkins is acquiring additional office space as part of its drive to increase turnover and footprint across the UK and a Cheltenham office will open in the coming months as it expands its geographical reach too. Since 2013 staff numbers have grown from seven to 36.  

Chartered Financial Planner HFMC Wealth has bought Generic Financial Management in a deal worth up to £3m. The purchase, which completed on 27th September 2018, will see two Directors of Generic Financial Management, David Verney and Marc Ruse, become Private Client Directors at HFMC Wealth. Meanwhile Paul Thomas will head up business development and will continue to provide Executive coaching as part of HFMC Wealth’s Adviser development programme. Generic Financial Management currently advises 270 client families. While the deal will add £950,000 of annual recurring revenue to HFMC Wealth’s existing turnover and increase assets under advice and management by £150m. HFMC Wealth's advice team comprises of 19 Financial Planners more than half of which are Chartered and the firm has more than £1bn in assets under management.

Rathbones is motoring towards the £50 billion mark, following its £104 million acquisition of Speirs & Jeffrey in the summer. In its third quarter update, the firm said assets under management rose 18.5% from 30 June to stand at £47.3 billion at the end of September. The Speirs & Jeffrey deal, which completed in August, contributed to £6.7 billion of the increase. Rathbones Chief Executive Philip Howell said in a statement: 'This increase in scale places us in a strong position to continue to improve our service to clients and mindful of recent volatility in investment markets, to maintain our disciplined investment in the business.' 

Schroders and Lloyds are to establish a new financial planning business as part of their previously announced joint venture. The business, which will target affluent customers, will be 50.1% owned by Lloyds, with Schroders holding the balance. The bank will transfer approximately £13 billion of assets and associated Advisers from its wealth management business to the unit. As part of this, Lloyds will receive up to a 19.9% stake in Schroders' UK wealth management business, in a move which will also provide the bank's high net worth customers access to Cazenove Capital's wealth management proposition.
Julius Baer has launched a dedicated unit to cater to Financial Advisers and other professional clients. The division will be led by board member and current head of advisory solutions Philipp Rickenbacher, who will become head of intermediaries and global custody. Rickenbacher has worked with the company for nearly a decade, previously serving as head of structured products, following a previous two-year period with the company in 2004 – 2006.

AFH has acquired Harrogate-based Premier Wealth Management in a £4.5m deal. The Board of AFH announced this morning that the acquisition had completed. Richard Evans, together with Andrew Huby and Premier's support staff, will join AFH, bringing over £90m of funds under management to further extend the operations of AFH.

National advice firms Tavistock Investments and Lighthouse have announced a new partnership as the pair seek to scale up their in-house fund range. The agreement also saw Lighthouse take a £1 million stake in Tavistock. Lighthouse has its own fund range, which it launched in 2016, that sit within its wealth arm Luceo Asset Management. Octopus Investments is the underlying Fund Manager for these funds. While Tavistock recently launched capital protection fund products that are mainly invested in BlackRock’s iShares range and guaranteed by Morgan Stanley.

There is a view that the boom in defined benefit (DB) transfers has been hugely beneficial to the flows of wealth managers – as well as helping IFAs’ revenues. However according to a note from RBC Capital Markets the impact DB transfers has had on wealth firms has actually been underplayed.

AIM-listed advice consolidator AFH has increased funds under management to £4.5 billion after a string of acquisitions this year. In a trading update this morning AFH said revenues for the year are expected to exceed £50 million. Up 49% from £33.6 million in 2017. Funds under management grew from £2.8 billion to £4.5 billion.

Troubled Discretionary Fund Manager (DFM) and Sipp provider Greyfriars Asset Management has entered administration. Adam Stephens and Henry Shinners of Smith & Williamson have been appointed joint Administrators of the Leicester-based business. Their first move in the administration was the sale of Greyfriars’s Sipp and SSAS business to Hartley Pensions.

Newell Palmer has made its 51st acquisition since the firm was formed in 1993. The Wolverhampton-based firm has acquired Sense Wealth Management, an advice business located in nearby Stourbridge. The purchase, for an undisclosed sum, adds another £35 million to Newell Palmer's assets under management, lifting the total to £2.3 billion. It also adds around 100 clients to its books, who will be serviced from Newell Palmer's head office.  

Tilney Group posted a £9.5 million pre-tax loss in the year to December 2017, despite generating an eye watering £226.5 million revenue. The group’s latest financial statements, filed at Companies House this month, revealed that the company’s expenses shot up 37% to £184 million over 12 months, including £80.6 million spent on staff remuneration.

KW Wealth, the new brand of European Wealth, has acquired Yorkshire-based advice firm Marchant McKechnie Independent Financial Advisers. In September European Wealth rebranded as KW Wealth following a restructure, in which new Chief Executive Marianne Ismail was appointed. This is the group’s first acquisition since then.  Based in Beverley, Yorkshire, Marchant McKechnie Independent Financial Advisers has 700 clients and £200 million of assets under advice. The firm made earnings before interest, tax, depreciation and amortisation (EBITDA) of £855,000 last year.



Market Movers and Shakers

Tilney has recruited a team of five, joining the firm’s London office as Directors of investment management. The team has joined Tilney from a number of different private banks and Wealth Managers including LGT Vestra and Credit Suisse but has an earlier a history of collaboration within Citi and Coutts. Joanna Hunt, joining from LGT Vestra, will head up the team which will focus on ultra-high net worth clients and their families. Head of investment management in London Miles Robinson said: ‘We are delighted to have reassembled what is undoubtedly one of the UK’s most highly-experienced teams focused on supporting wealthy individuals and their families.’ ‘Our new team have been totally immersed in advising some of wealthiest individuals and families in the UK for decades and each of them has a deep understanding of the requirements of high value clients. ‘At Tilney they will be wholly focused on delivering an outstanding and completely personalised service to small number of very wealthy clients.’  Before joining LGT Vestra in 2015, Hunt spent eight years at Citi Private Bank and five years at Coutts. Stephen Bristow joins the team from Credit Suisse where he worked as Director and franchise head for high net worth clients. Prior to that he was also at Citi Private Bank and Coutts, where he spent 19 years. David Man and Stewart Richardson, former cover-stars and founding Partners of RMG Wealth Management, have also joined Tilney. They have been at RMG Wealth since 2009, where Richardson served as CIO. Completing the team is Tracy Browne who joins the firm from Salisbury House Wealth where she worked as a Consultant. Previously she worked at Citi Private Bank as a Director and was a Senior Private Banker at Coutts for 20 years. Tilney has been on an accelerated recruitment drive across the country.

Six Senior Investment Managers from Charles Stanley’s Manchester office, including office head Paul Lawrence, have had their contracts terminated following a dispute with management.

A week after opening up its 60th UK branch, Raymond James has recruited a Brewin Dolphin Director to set up a new hub in Southampton. Rob Carroll, who was previously head of Bournemouth and Lymington at Brewin, has joined forces with Raymond James’s Robert Hale to set up a business based in Whiteley, Hampshire. Hale initially joined Raymond James back in 2016 from Charles Stanley and headed the firm’s Solent branch, but he has decided to now take on a new venture with Carroll.

Close Brothers Asset Management has recruited two more Rathbones veterans to spearhead the launch of a new Scottish wealth service. Andrew Mackintosh-Walker and John Henderson joined the firm's Edinburgh office as Managing Directors in the high net worth team in October 2018. Close said the appointments would allow it to offer bespoke investment management via its Scottish team for the first time, complementing its existing expertise in wealth advice. 

National advice firm LEBC has announced the appointment of Derek Miles as Managing Director of its corporate and private client division ahead of a planned flotation next year. Formerly Managing Director of Aspira, acquired by LEBC in December 2017, Miles aims to extend the services offered to corporate and private clients as part of its continued growth strategy. Commenting on the firm’s 18-year growth plan, LEBC Chief Executive Jack McVitie said: ‘As LEBC continues its growth trajectory we have a responsibility to keep improving and growing our organisation so that we can continue to exceed our customers’ expectations.’

Barclays Wealth Management has made six senior appointments to its team in West Yorkshire. Richard Kirkham joins this month from Redmayne Bentley, also in Leeds, where he has worked since 2012. Prior to this, he gained more than 20 years of experience in both the wealth management and institutional equity markets in London and New York. David Firth joins from Tilney, bringing more than 25 years' experience in financial services. He was previously a Financial Planner Director, responsible for providing, developing and implementing holistic financial planning solutions. Catherine Makin also has more than 20 years of experience in wealth management and brings prior experience as an investment specialist working for high net worth and corporate clients. Richard Lindop gained experience of working sell-side and managing portfolios before successfully becoming a Level 7 Chartered Wealth Manager. He then moved into more client-facing roles managing £220m of assets for private clients, trusts, pension funds, charities and companies. Andrea Charge joins Barclays Wealth from Coutts, where she worked for ten years providing bespoke financial solutions to high net worth individuals including entrepreneurs and business owners. Finally, Alison Probert joins the team as a Director, having already worked within Barclays Wealth for six years, initially joining the North West division to manage high net worth clients. She has a background in corporate law and then in Barclays Wealth Management's key client team, where she managed clients with complex and substantial affairs.

In other news...Barclays Wealth Management has appointed Robin Taylor as head of its south-central division as part of its continuing regional expansion. He takes responsibility for over £700 million of client assets across the south-central UK, which includes Bournemouth and Southampton. Taylor joined Barclays’ banking division in 2001, before transitioning to wealth management in 2007. He started his career at Prudential.

The Managing Director of Intrinsic's wealth network will step down next year. Stephen Fryett, who has been at Intrinsic since it was formed in 2005, will exit midway through 2019 in order to 'seek new opportunities'. He was initially a Network Sales Director before being promoted to Managing Director of the wealth network in 2016. Intrinsic group Managing Director Stephen Gazard, who joined the business 18 months ago, will take over Fryett's responsibilities. 

Cheviot Asset Management founder Michael Kerr-Dineen has made a dramatic return to the industry, recruiting 24 staff from Quilter Cheviot for his newly launched wealth firm, New Model Adviser® sister title Wealth Manager can reveal. Kerr-Dineen will chair the company, Vermeer, with former Collins Stewart CEO and Simon Melling to serve as Chief Executive.

London-based Serenity Financial Planning has created a new role, head of business standards, at the financial life planning firm. Clive Thompson, who has been a life planner at Serenity for the past nine years, is taking up the position. The new role includes responsibility for ensuring efficiency at the firm and making sure Serenity delivers on its business plan and responsibility for financial results.

Financial Planner and money coach Catherine Morgan has joined IFA Postcard Planning in Darlington. After three months with the firm, Postcard Planning Director Rohan Sivajoti has announced Morgan will join the business on a permanent basis. She has 19 years’ experience in financial planning and holds a certificate in mortgage advice and the diploma in financial planning. She is also a pension transfer specialist and is qualified in financial coaching.

Quilter has overhauled its senior management team following its separation from South African parent company Old Mutual. In June, Old Mutual Wealth changed its name to Quilter and listed on the London Stock Exchange. Quilter has announced a number of changes to its leadership team: Martin Baines, Chief Executive of its Discretionary Fund Manager Quilter Cheviot, is stepping down; Replacing him as the new head of Quilter Cheviot is Andy McGlone, currently the Managing Director of the DFM; Steve Braudo, Quilter’s Chief Operating Officer, is leaving the group on 5 October to ‘pursue other opportunities’; Karin Cook, formerly chief operating officer of commercial banking at Lloyds, will become Quilter’s new chief operating officer; Peter Kenny will become the chief executive of Quilter International.

Nick Holmes, Managing Director of Brooks Macdonald's UK investment business, is stepping down.  He will be leaving the firm at the end of the year after 22 years. Holmes will step down from the board on 30 November.  Following Holmes's departure, the UK investment management business will be co-led by Robin Eggar and John Wallace. Eggar has been serving as head of London, overseeing five investment teams in the city. He joined the company in 2000.

Deutsche Bank’s wealth management arm has poached Tilney Partner Nick Reeves as head of financial planning as it continues its expansion in the UK. Reeves will join in January 2019 after five and a half years at Tilney and will be based in London. During his time at Tilney, Reeves was a private client partner for financial planning. Before that, he worked for three years at Barclays Wealth, where he advised high net worth and ultra-high net worth clients.

Brewin Dolphin has bolstered its Cambridge arm with the hire of a Financial Planner from Tilney. Scott Heslin was also based in Cambridge in his last role, managing a client portfolio across East Anglia with a focus on Norfolk. He has more than ten years’ experience as a Financial Planner, with expertise in retirement and life planning. His CV includes stints as an International Wealth Manager in the United Arab Emirates and a spell in the Channel Islands for HSBC Expat. In his new capacity Heslin will work with head of office Heather Sonnett to help expand the firm’s reach across Cambridgeshire.

All information provided in this Market Digest has been gathered from multiple Financial Services Media sources and individual company press releases.

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