View more on these topics

AJ Bell: Advisers will not get preferential terms in IPO

Advisers will not be eligible to become shareholders in AJ Bell when it floats unless they are a customer of the business, the platform has said.

The business is preparing to list on the main market of the London Stock Exchange either in December or early 2019.

As part of the listing, AJ Bell is ringfencing some shares for retail investors. Those investors who want to apply for shares in the IPO must be UK residents and have opened an account with AJ Bell by 15 October.

AJ Bell chief executive Andy Bell says the business has taken a cautious view on letting advisers invest in the business given inducement rules.

Other platform businesses, including Nucleus and Transact, which both listed this year, do have advisers as shareholders.

Bell says: “We took a cautious view that said if an adviser is a customer then they are entitled to participate as a customer but, in their role as an adviser, there is no mechanism for them to get any special terms or participate.”

If the IPO goes ahead in December, the application process for retail customers to buy shares is expected to start at the end of November or early December. It will be open for at least seven days.

Customers eligible to buy shares can do so through one of, each of, or a combination of their Sipp, Isa, Lifetime Isa or dealing accounts.

The minimum value of shares that must be applied for in each account is £1,000.

Bell says: “IPOs are traditionally done behind closed doors with retail investors rarely getting access to the flotation price of the shares. As a company that aims to make investing easy for people this didn’t feel like the right approach for us.”

Bell is reducing his stake in the business from 28 per cent to 25 per cent in the listing and fund manager Invesco is selling down its holding from 44 per cent to 25 per cent.

Current AJ Bell management and some former staff have a 25 per cent holding in the company as it stands. They will sell down around 10 per cent of that holding.

Seneca Investment Management also holds a 3 per cent stake in the business and will sell down a portion of that holding.

Recommended

3

Sesame and Openwork top latest FOS complaints table

Well-known names in the advice market like Sesame, Openwork and St James’s Place have once again topped the latest complaints data as the number of complaints against financial planners has ticked up. However, the proportion of upheld complaints against the most complained about advice firms fell in the first half of the year, according to […]

Investment Clock Economic report: Solid, but sideways to slower

Senior Economist, Melanie Baker shares our latest Investment Clock Economic report, providing a deep-dive look into the current economic backdrop. Melanie observes that global growth continues at a solid pace for now, supported by still accommodative monetary policy and looser US fiscal policy.  She acknowledges that there are more signs that growth has peaked and […]

New adviser roadshows focus on delivering income in retirement

Canada Life is launching a new series of regional adviser roadshows headlined by leading industry commentator Tony Wickenden. Held in prestigious venues around the UK in September and October, the roadshows focus on ways to deliver high levels of tax free income in retirement using a range of product wrappers and utilising all available tax […]

Health - thumbnail

Healthcare predictions for 2015 from Jelf Employee Benefits

The continuing fall-out from the Competition and Markets Authority’s (CMA’s) review, the rise of the private GP and digital engagement will be the primary focuses in the private healthcare industry during 2015, according to Iain Laws, managing director, healthcare and group risk, at Jelf Employee Benefits.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com