SimplyBiz has launched a practice buyout initiative offering IFAs the ability to transfer clients to its non-advisory service Capital Rewards Plus or to a panel of IFA firms if the clients require ongoing advice.
The firm says the initiative is aimed at IFAs retiring from the industry, those who are segmenting a client bank ahead of the RDR and those who are removing their investment service to concentrate on other areas post-RDR.
Currently 12 IFA firms have agreed to take on extra clients as part of the service.
The scheme pays 70 per cent of renewal income to the IFA for five years, in addition to 20 per cent of the income created by new business from their existing client bank.
SimplyBiz joint managing director Neil Stevens says: “The average retirement attrition of approximately 5 per cent each year as advisers finish long and successful careers had been a key driver for us developing this new service.”