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Perspective member steps down from advisory board and quits consolidator

IFA consolidator Perspective has been dealt a further blow after the director of one its acquired firms resigned from the business.

Money Marketing understands that in an email circulated last week, Perspective members were informed that Austyn Smith has resigned from Austyn James Consulting, the firm he founded in 1996 and which was acquired by Perspective in 2011.

The terms of the acquisition mean that following his departure, he can no longer advise any of his old clients.

Austyn Smith was on the Perspective advisory board, a group established to support relations between acquired firms and Perspective, Money Marketing understands. 

The clients will remain with Perspective, with its staff continuing to advise them.

Money Marketing reported in January that Perspective had been forced to defer payments owed to acquired firms, with executive chairman Paul Hogarth injecting £2m of his own funds.

It remains unclear whether Smith was due outstanding payments when he resigned.  

A spokesman for Perspective says: “We always knew that as we looked to restructure and revitalise the business a small number of advisers would decide it was not for them. As a business, it is important we focus firmly on those individuals and firms that understand and appreciate the opportunity ahead and that is exactly what we are doing.”

The firm had been eyeing a flotation last year but has now abandoned those plans. It announced in January that it would be moving away from its acquisitions strategy.

There have been a number of high profile departures from the management team in recent months, including group operations director Peter Craddock and finance director Phil Carr, and recently with managing director Damian Keeling. Craddock has since joined the FCA’s regulatory decisions committee.

Austyn James did not respond to requests for comment. 

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Wow – I know Austyn and he would not take this deciosion lightly – watch the law suits fly now. Seems that the Perspective model is unravelling at a pace now…

  2. David Brattesani 19th May 2014 at 6:02 pm

    Consider how many people have distanced themselves from Perspective in the last few months; all the key directors, including Morrow, Craddock and Keeling. Add in the fact that they’ve had to reschedule payments to firms that they’ve acquired and that PH has had to lend the firm £2 million. Bailiffs have closed one of their offices for non payment of rent within the last few weeks. Another insider now leaving Perspective should simply reinforce the message that those dependent on this business should asking questions about where they go from here.

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