Inter-Alliance wants to graduate as top of class

Inter-Alliance wants to be the UK&#39s dominant national IFA, with plans to

overtake Bradford & Bingley by the end of the year by bringing 147

graduates on board.

The IFA wants to take its number of registered individuals up to 900 from

the current 634. It says it will achieve this target through organic growth

and by integrating the 147 graduates it is training.

Rival IFA Bradford & Bingley has around 660 registered individuals.

Inter-Alliance&#39s plans were unveiled as it published its preliminary

results for 1999. Turnover was up by 141 per cent to £12.79m from £5.31m.

The IFA predicts that turnover will more than triple to £41m this year. But

it made a loss of £968,000 last year, an improvement from 1998&#39s loss of

£1,526,939. It says 1999&#39s loss was due to expenditure on new projects and

ongoing investment.

Chief executive Stuart McGreevy says the growth will be fuelled by

Inter-Alliance&#39s “integrated” distribution strategy, including e-commerce,

while it will also shift towards fee-based advice.

McGreevy says: “We are moving increasingly to a new remuneration model

based on fees. Clients value advice. The products slot in afterwards.”

Chase de Vere Investments managing director Nigel Mitchell, whose firm is

up for sale, believes a deal with a life and pension IFA would be “an

obvious fit”.

The firm plans to recruit 80 new staff this year and hopes a buyer will

take on board the ideas of the management team. Woolwich, Bradford &

Bingley and Misys have been named as potential buyers.

Mitchell, in an interview with Money Marketing, says: “Given we are an

investment IFA, if you looked at a strategic buyer who had an IFA branch

but who deals primarily in life and pensions, then they would be an obvious

fit.”

Profile, p33.