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Tavistock encourages ‘poorer performing advisers’ to leave group

Advice network, fund manager and support service provider Tavistock has said that it has pushed some “poorer performing appointed representative firms to leave the group” this year over fears of regulatory risk.

In its results this morning, Tavistock notes that because of its tightened attitude, along with additional costs from Mifid II reforms, advice revenues fell by 11 per cent rom £25.2m in the year ended 31 March 2018 to £22.5m in the year to 31 March 2019.

The firm writes: ” One of the board’s strategic objectives is to ensure as far as possible that the regulatory risk associated with the group’s advisory business is minimised and that the risk is appropriately matched against potential commercial reward. In pursuit of this objective, we have during the year successfully encouraged a number of poorer performing appointed representative firms to leave the group.”

Tavistock did not provide further details of the performance criteria it has used to assess advisers or the number that it had encouraged to leave.

In the results this morning, Tavistock has also confirmed it is planning to launch a new Sipp wrapper on its direct-to-consumer smartphone app i-stock.

The firm unveiled its D2C service last year. Retail investors can access Tavistock Wealth funds through what the firm calls a “free of charge” Isa or general investment account.

Tavistock says a Sipp and other Tavistock Wealth funds are also set to launch on the app, as well as an option for partner firms to white-label the technology.

Tavistock recently signed a deal with national advice firm Lighthouse to distribute some of its capital guaranteed products, and says that this could be one of the firms that could benefit from being involved with the app.

“In due course the app could be rebranded to provide Lighthouse or any of its affinity group partners and their aggregate memberships access to Tavistock Wealth’s investment products.

“Significant inflows of funds could be achieved were even modest levels of individual investment to be made by a high volume of i-stock users.”

The firm notes, however, that “the app is an access tool and does not itself provide any form of investment advice to the user”.


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