Merchant House Group has launched a new financial planning division after acquiring certain assets from Clarkson Hill Group.
Merchant House’s new business aims to recruit up to 200 IFAs which it says can better service its clients as the retail distribution review draws closer.
Merchant House Financial Services’ acquisition of certain assets from Clarkson Hill does not include the bulk transfer of its IFAs or clients. The deal covers certain commission debtors – amounting to approximately £4m – administrative staff, fixtures and fittings and the company records.
MHFS has agreed to collect the commission debtors due to CHG out of which up to £3.75 million will be payable to the administrator and third parties and an estimated £250,000 to MHFS.
Merchant House chairman James Holmes says: “We are in talks with all 200 or so Clarkson Hill IFAs and we are confident that a number of them will join our new business. We have a strong pitch in terms of the same deal the currently have, same offices and hopefully a wider range of products.”
MHFS has also announced the appointment Nic Brown as managing director of MHFS and a director on the management board. Brown was previously a founding director of Foster Denovo.
MHFS plans to cover the same regulated products as CHG, these include covering regulated products such as life assurance, pensions and collective investment schemes, term assurance, permanent health insurance and medical expenses insurance.
CHG announced on December 17, 2010, that it had gone into administration and had appointed Bridge Business Recovery LLP as its administrator.
Moneygate recently announced that it had given up on a deal for Clarkson Hill Group but stated it is welcoming applications from the group’s former advisers to join the firm.
Clarkson Hill Group chief executive Ron Pritchard says: “We searched for sometime to find the right company where we felt able to recommend to our independent advisors and clients that they could find a home. We have been impressed with the professional approach of Merchant and feel confident that those of our advisors and clients that go there will be well looked after.”
Merchant House Group chief executive Christopher Day says: “The launch of this new business venture for us compliments our other businesses and is a further step in our strategy plan. As with our other businesses, we believe we have identified a market opportunity and the right team to implement the opportunity. I would like to welcome our new colleagues and I wish them well within the group.”