Almost half of David Aaron Partnership's advisers have left the company to spearhead the launch of Bates Investment Services' first regional office in Milton Keynes next year.
Six of DAP's 13 advisers have decided to join Bates after approaching Bates' parent firm The Money Portal soon after the TMP deal to acquire DAP collapsed in November. The RIs, all high-net-worth specialists, will comprise the advisory staff of the Milton Keynes office, which is due to open in the first quarter of 2004. It will be the first branch that Bates has set up outside of its Leeds base.
David Aaron, who told Money Marketing last month he was not seeking an alternative buyer for his firm, says three of the RIs had already been made redundant before they joined Bates. He confirms that the other three resigned.
TMP's move is part of an aggressive recruitment drive which it hopes will see 150 RIs join the company within 18 months, mainly through acquisitions. It has already snapped up discount brokerages HCF, Willis Owen and the Isa and With-Profits Bonds shops this year. The August move for Bates was its first foray into building an
independent advisory arm.
DAP was intended to be the next move in the IFA sector but TMP pulled out of negotiations after failing to resolve a number of issues which had hampered the agreement.
TMP IFA director and Bates founder Graham Bates says: “We are obviously pleased to have been approached by such high-calibre individuals and delighted that they have chosen Bates as their new home.”
TMP managing director Richard Craven says: “We are putting a great deal of resources into building a premier advisory service and we are only interested in attracting the best.”
David Aaron said he was too busy to comment.