Rickman Tooze IFA advisers have struck a deal to buy the assets of the firm forced into administration by a 350 per cent PI increase and crippling pension review costs.
A group of the firm's top-earners has succeeded in buying the assets of the business for an undisclosed sum after it went into administration on August 9.
The group of 12 has formed a limited liability partnership, which will be known as RT Financial Planners but has not yet received FSA authorisation.
The remaining 21 RIs are leaving and are hoping that they will receive the commission owed to them when administrators Baker Tilly split any remaining funds left in the old firm.
RT Financial Planners plans to trade as a small group of fee-based financial advisers targeting high-net-worth business.
Former Rickman Tooze chief executive Matthew Morris said it was wrong to say that the investment IFA had failed after 16 years successful trading but added that the difficulties it faced from PI increases and the pressure of regulation in the past 12 months had forced it out of business. He admits the pension review left a significant hole in the company's funds.
Rickman Tooze was previously owned by a group of eight private shareholders and two of those are taking part in the new partnership. The partners will take varying stakes in the company in proportion to their investment.
Rickman Tooze had offices in Cirencester, Cheltenham, London and Winchcombe, some of which will now close.
Morris says: “I take issue with focusing on the Rickman Tooze business as a failure. At the end, it could not operate in the new environment and I would not be surprised if it was followed by another 250 IFA firms.”