National restricted advice firm Sandringham Financial Planners is eyeing a listing on the Alternative Investment Market, Money Marketing can reveal.
New chairman Barry Kayes says an Aim listing “three or four years down the line” will be the “direction of travel” once the firm has reached “critical mass”.
The former Tenet chairman says Sandringham’s objective is to get to 250 partner firms, up from around 130 currently, the majority of which are one-person businesses.
Kayes says growth could be ach-ieved as a result of growing interest from adviser firms in segmenting their lines of business and handing over some areas of responsibility to Sandringham.
In addition, Sandringham has larger groups of appointed representatives on its radar for acquisition.
Kayes says the spiralling costs of professional indemnity insurance, regulatory fees and rising levies by the Financial Services Compensation Scheme could push advisers towards Sandringham.
He says: “If you take all the regulatory costs to advisers, it equates to about 25 per cent for someone with an income of £40,000.
“They are beginning to wake up to the fact they can come to Sandringham and pay less than they are currently.”
Kayes was appointed chairman in June and was followed by ex-James Hay managing director Tim Sargisson, who took on the role of chief executive in July.
Sargisson will start in his new position in August.
Also in July, chief risk officer Julie Darlington left Sandringham and joined adviser support firm Caerus Capital as compliance director.
Sandringham was founded by SimplyBiz chairman Ken Davy in 2012, with £2m of funding coming from SimplyBiz.