Bellpenny has gained FSA authorisation and agreed acquisition deals worth £400m of funds under advice.
The consolidation vehicle, which is backed by property services group Countrywide and US-based investment management firm Oaktree Capital Management, is led by Intrinsic Financial Services founder Kevin Ronaldson.
The firm announced its launch plans in May.
It has now received FSA authorisation and announced it has initial acquisition agreements in place with six firms which total £400m of funds under advice. Bellpenny says there are a further 10 acquisition deals in the pipeline which will account for an additional £600m funds under advice.
Bellpenny is targeting up to 60 adviser acquisitions in the first 18 months and will offer restricted advice. The company is acquiring client banks and adviser assets but not taking on liability for past advice.
Bellpenny chief executive Ronaldson says: “The initial acquisitions are proof of the strength of our proposition and a testament to the quality of the client-facing process we have been building since we announced our formation and funding back in May.”
Countrywide group chief executive and Bellpenny chairman Grenville Turner says: “I am delighted Bellpenny has progressed so quickly and is already at the forefront of offering IFAs options and opportunities in the lead up to the RDR.”
Essential IFA managing director Peter Herd says: “I keep hearing of all these companies coming to the UK market with acquisition war chests to buy adviser firms as people are exiting. My concern is whether they have the resources and manpower to cope with the expanding client base and deliver a good service.”