Ashcourt Rowan Financial Planning has agreed to buy The Co-operative Bank’s IFA arm for an undisclosed sum.
Under the terms of the deal Ashcourt Rowan, part of Syndicate Asset Management, will acquire Co-operative Bank Independent Financial Advisers and certain CIFA assets.
Ashcourt Rowan will pay £450,000 in cash for all of CIFA’s trail commisssion receipts, with £250,000 paid on the first anniversary of completion of the acquisition and £200,000 on the second anniversary.
CIFA’s advisers, sales managers and support staff will transfer to Ashcourt Rowan on completion of the deal, expected on October 1.
CIFA’s client database and trail commission will also be transferred to Ashcourt Rowan at the same time.
CIFA has about 55,000 customers with funds invested of approximately £1bn.
It employs 52 staff, with most IFAs operating in the north of England, the midlands and south Wales. Ashcourt Rowan says this will complement its existing IFA network based in the south.
The deal will take Ashcourt Rowan’s funds under management to over £3.3bn and funds under managemnt for Syndicate’s wealth division to over £4.3bn.
Ashcourt Rowan chief executive Mark Cheshire (pictured) says: “I am delighted to add such a high calibre team of IFAs, sales managers and support staff to our business.
“They have the right balance of knowledge and experience to be able to best advise clients on the many sensitive issues that individuals and families have to address when planning for their near, mid and long-term financial futures. We believe the systems and culture that have been established within Ashcourt Rowan will provide an ideal environment in which the CIFA team and their clients can prosper.
“The acquisition is also an important step in delivering the strategic goals agreed with Syndicate for Ashcourt Rowan.”
Co-operative Financial Services managing director of retail Rod Bulmer says: “Throughout this process, we have sought an established IFA business that was committed to the market with an aspiration to retain existing CIFA client relationships. Ashcourt Rowan was assessed against our own core values and their determination to offer an excellent financial planning service made them the right choice for our IFA business.”