North-east IFA network Moneygate has emerged as front runner to acquire Alpha to Omega.
Money Marketing understands Moneygate is the preferred bidder while administrator Benedict Mackenzie has confirmed a deal for A20 is imminent. Simon Underwood and Rupert Mullins of Benedict Mackenzie were appointed joint administrators for the network on January 25.
Last week, law firm Regulatory Legal raised concerns that the administrators were trying to “pre-pack” A2O advisers and their client assets to sell on to another IFA firm.
One A20 rep says he has been offered terms from an unnamed firm that would see commission paid out in full on the existing commercial terms and would immediately accept written business. It is also understood that advisers would be offered a £3,000 signing incentive to commit to that firm for two years.
Regulatory Legal partner Gareth Fatchett says: “The key issue remains the ownership of the clients as to sell them on as part of the deal would raise questions of TCF, given that it is the adviser who owns the customers.”
Moneygate refused to comment on the issue.