Plan Invest is buying the client bank of Llandudno IFA David Chamings in the first of a potential series of acquisitions aimed at boosting its sales and ongoing commission.
Cheshire-based Plan Invest will inherit around 150 investment clients from the business, which has been run on a non-discretionary basis by a husband and wife team for 21 years. Both RIs are set to retire.
Plan Invest, which has about £100m under management, will concentrate on cross-selling to new clients which have not previously been advised on mortgages or pensions. It is also keen to bolster the amount of trail commission it generates.
Joint managing director Mike Owen says the deal is likely to be followed by other deals as increasing numbers of advisers are squeezed out of the industry by spiralling professional indemnity insurance.
But he says future moves must complement the firm's existing book and come at a price commensurate with funds under management and commission.
He says: “We have known the business for many years and thought it would suit us. We have had a good response so far and will start cross-selling immediately.
“It may well be the first of several more acquisitions. We are looking at all types of companies at the moment.”