2Plan in talks to take on Park Row advisers
Share
This week’s Money Marketing reveals that 2Plan is understood to have met with the FSA on Tuesday to discuss the mechanics of transferring this number of advisers in bulk from one firm to another. The FSA is expected to reach a decision on the deal by the end of the week.
If the firms get the green light, it is expected that a deal would be finalised next month. A number of other firms are thought to have shown interest in Park Row’s advisers but 2Plan is understood to be the front-runner.
2Plan has around 180 advisers but that could rise to 420 if the deal goes through, although Park Row advisers would not be obliged to move.
Moneymarketing.co.uk revealed on Friday that Royal Liver was in talks with a firm regarding the bulk transfer of Park Row advisers and business activities.
A letter, circulated to Park Row advisers last week, states that all employed staff have been notified about the potential for redundancy.
The letter states: “A bulk transfer is in the best interests of advisers as it enables those advisers electing to transfer to the new firm to carry on advising clients without the need for re-applying for FSA authorisation.”
Royal Liver and 2Plan declined to comment on the latest news.
Last week, Royal Liver said: “Royal Liver is exploring several options for the future, including holding discussions with a number of companies that have expressed interest in acquiring some aspects of the Park Row business. These discussions are ongoing.”
Royal Liver has been looking to offload its IFA arm. Park Row’s last accounts show a £7.4m loss for 2008 compared with a £8.2m loss for 2007 and includes auditor concerns that it may need further support from Royal Liver, depending on an ongoing FSA investigation into the firm’s systems and controls.
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (2)
Anonymous | 9 Sep 2009 10:00 am
middlemen
Its about time we woke up in this country I have been in this bus for 40 yrs and have always been independent this means placing my bus direct then along comes these middlemen like park row sesame and all these cos that feed of the backs of brokers & ifas there is only so much money in commission fees to go around and the reason these co such as PR N.DATA THE LIST GOES ON they dont look for bus it comes in from B&IFA ONCE THAT BUS DRIES UP THEY ARE SCREWED SO TELL THEM TO GET A GRIP FIND YOUR OWN BUS AND ALLOW THE BROKERS & IFAS TO GO DIRECT LIKE THEY DID YRS AGO
Unsuitable or offensive? Report this comment
Julian Stevens | 9 Sep 2009 12:04 pm
2Plan in talks to take on Park Row advisers
The problem, of course, for so many IFA firms is the relentlessly increasing tonnage of hoops and hurdles and red tape constantly being spewed out by the regulator to justify its own sorry existence, with no regard for how this impacts on profitability. Does 85% of the IFA sector need the FSA to tell it how to conduct its affairs with honesty, professionalism and integrity? Of course it doesn't. What is needed is a cost effective regulatory structure that targets the 15% of the IFA sector that does not fulfil those criteria. But the FSA cannot/will not see this, as it is not itself a commercial organisation and raises the money it considers it needs by coercive levies. Pay up or pack up. Yet even with that easy system of revenue raising, the FSA cannot run its affairs competently. So how can it possibly expect those it regulates to be receptive to diktats from Canary Wharf about fiscal responsibility? Still, all this does is to confirm what we know already ~ if the FSA cannot destroy the IFA sector with an endless succession of hindsight reviews, it will simply continue to devise other methods to achieve its flimsily disguised true long term objective of handing over product distribution to the banks and providers. What will then become of advice is something that seems unfortunately to have been overlooked. Being an IFA these days, whether directly regulated or via a network is tough and it ain't going to get any better until somebody sends in the dogs to Canary Wharf and really sorts things out.
Unsuitable or offensive? Report this comment