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IFA consolidator AFH Financial plans Aim listing

AFH Financial is looking to move to the Aim stock exchange in the second quarter of this year.

The financial adviser and discretionary fund manager currently trades on the Icap Securities and Derivatives Exchange. ISDX is a London-based stock exchange that allows small and medium sized firms, which tend to carry a greater investment risk than more established or larger firms, to raise finance.

In a statement this morning, AFH says the move will assist the firm in attracting new investors, improving liquidity in its shares and raising additional capital when required.

It also hopes the move will help to attract further acquisition opportunities.

AFH chief executive Alan Hudson says: “We believe that given the fundamentals of the business and the nature of the IFA market, the time has come for a move to Aim.

“The increased profile will assist the company in its aim to expand through strategic acquisitions and organic growth.”

The firm is due to release its results for the year ended 31 October 2013 at the end of March, and says a further update on the move to Aim will be released at the same time.

In September AFH launched a bond issue to raise £752,000 to fund future acquisition deals. The unsecured bonds pay 8 per cent and can be traded on the ISDX.

In today’s announcement, AFH says the bonds, which mature in 2020, will remain on the ISDX.

In August AFH announced it had raised £2.8m from investors via a share issue of 1.9 million shares priced at £1.09 per share.

The company has acquired a series of advice firms in the last 12 months.

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  1. The question I am asking myself recently as now in my sixties is how do we want the future to be for younger advisers in the financial service industry?
    Do we want to limit their aspirations to be just “a job” ,or a career, which allow them if they so please to start their own practice
    RDR has been the stepping stone it has created a professional career which we can attract bright and talented individuals for the universities to become financial planners /advisers
    The question I have to ask as I am in the latter stages of my career How and in what way are we going to attract their interest to join a worthwhile profession
    I have been in the industry for 37 odd years. Frankly the model has not changed in all that period. I therefore, question the increase in consolidators over the past few years Throughout my career I have seen the wealth and the power of adviser industry firms remain in the hands of few people. The last time this shift came was in 1986.
    Those that are passionate about passive strategies often quote Fred Schwed classic book Where are all the customers Yachts.
    I would like to ask that question to rephrase that question
    Where are all the advisers Porsches Aston Martins and Maseratis that keep appearing in profiles of the consolidators or those in charge of other organisations such as networks or large nationals
    Over the years I have dealt with a number of clients who owned small retail pharmacy outlets . The government decided to restrict pharmaceutical licences for retail shops . The restriction in these while it as welcome for other reasons at the time was . welcome Many did have concerns about the future epically in increasing the value. Many at the time expressed concerns how it would affect the future prospects of the young pharacimicts w within in the industry
    Reading web sites despite have increased the from four to five years to obtain a pharmacy degree. Many youngsters worldwide now feel that it is a “job” rather than a career .Who can blame them when they have to work in a supermarket or large retails store until late. Would that inspire you if you had to do the same
    Do we as older advisers want to see this be the career path in financial services industry go that way .While in the short term to many older advisers this may see selling to consolidators ,as a way of obtaining maximum value for your business

    The second question I would ask those that own and run practices is If the consolidators and other networks gain control largest influence in retail sector
    Ask yourself in the future will they if they gain power and influence on the retail distribution be prepared to offer you the true worth of your practice . Secondly how long will their earn out be and how much will they clawback as client you have had a good relationship with do not like the new owners Modus Operandi they have to work in.

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