Moneygate frontrunner to acquire A20
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North East IFA network Moneygate has emerged as frontrunner to acquire Alpha to Omega.
Money Marketing understands that Moneygate is the preferred bidder, while administrator Benedict Mackenzie has confirmed that a deal for A20 is imminent. Moneygate currently has around 75 RIs.
As revealed by Moneymarketing.co.uk last month, Simon Underwood and Rupert Mullins of Benedict Mackenzie were appointed joint administrators for the network on January 25.
Last week law firm Regulatory Legal raised concerns that the administrators were trying to “pre-pack” A2O advisers and their client assets to sell on to another IFA firm.
One A20 rep says he has been offered terms from an unnamed firm that would see commission paid out in full on the existing commercial terms and would immediately accept written business. It is also understood that advisers would be offered a £3,000 signing incentive to commit to that firm for two years.
Regulatory Legal partner Gareth Fatchett says: “The key issue remains the ownership of the clients as to sell them on as part of the deal would raise questions of TCF given that it is the client who owns the customers.”
Moneygate refused to comment.
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Readers' comments (4)
Anonymous | 10 Feb 2010 10:38 am
This looks like great news for A2O advisers.
As an Edward Jones adviser, I was approached by Moneygate in November 2009 after TL made me and 250 other advisers redundant.
At first Moneygate looked too good to be true but I can honestly say after becoming authourised at the start of January that they do exactly what they propose.
I recieve qualified appointments, pay no monthly costs and all of my post sale admin is done for me at Head Office. Best of all I am already booked in to sit a JO exam in June and Moneygate are paying for it.
13 years in FS and this is the first time in a long while that have been excited about something.
I have not heard anything about any A2O deal before reading this article, but if it is true, it looks like another 100 or so advisers could be kept in the industry. Good News in my view.
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Concerned of the Industry | 10 Feb 2010 4:50 pm
Sorry to appear a bit negative but there is no such thing as a free lunch. No monthly costs?
Presumably you are paying for FSA Fees, FSCS Levy, P.I. + Moneygate's margin, exam fees etc as a retention on your business?
You can then work out the cost of their lead generation, HO post sale admin (how old fashioned and quaint - try electronic submissions!) etc
Also on the FSA Register they seem to be an AR of Sesame - how does this work?
Thanks.
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InterestedIFA | 10 Feb 2010 6:32 pm
Concerned - your comments are understandable but not actually true.
Moneygate offer me two pay-rates, an enhanced 'network style' rate for self-generated business and a lower rate for when they supply the lead or appointment.
We have no fixed monthly costs and simply have a variable pay-away which is tiered with production. Moneygate has it's own IT platform where all submissions are done electronically, dedicated case manager and appointments are qualified and diarised for me when I need them.
I don't see anyone else in the market coming close to this, I should know, I spent almost 10 months looking!
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ifa man | 12 Feb 2010 11:53 am
I'd echo that one. It's like having an invisible back office in your briefcase.
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