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Towergate in talks to acquire four firms

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Towergate Financial has revealed it is currently holding acquisition talks with four firms as it launches a proposition to help IFAs develop RDR-ready businesses.

The company says it has shifted its original acquisition strategy from two years ago when it was pursuing rapid growth to a more considered and selective approach.

CEO Ian Darby (pictured) says: “We are continuing to look for selective acquisitions of high quality firms. We have four deals in the pipeline to be signed off by our investment committee, and expect to make an announcement over the coming weeks.”

The discussions between Towergate and the four firms in question are still ongoing.

Towergate bought the mortgage brokerage John Charcol out of administration in February.

Towergate Financial was forced to scale back its acquisition plans last June after it was placed into administration and folded into the Towergate Partnership group.

The announcement about Towergate’s potential deals comes as the company prepares to launch a package of tools to help advisers transition to an RDR-compliant business model.

The ’transition toolkit’ combines online services and client literature to aid IFA firms to move to recurring fee model.

Part of the toolkit allows advisers to access a platform via their own website powered by Investment Funds Direct Limited. IFDL was chosen last month to power Intrinsic’s bespoke platform, and is also the provider behind Ascentric.

Other modules in the toolkit include a fact-find, an attitude to risk tool, a multi-asset investment portfolio, a client service programme, and a monitoring committee which reviews the investment programme and is made up of senior members of the Towergate business and Towergate’s compliance and risk director.

The toolkit is neutrally branded allowing advisers to white-label the tools in line with their own business.

Advisers can choose which modules they want to adopt and will be charged accordingly, with the charge taken as a proportion of their recurring income.

Business development director Dan Saulter says: “Designing and building a whole of market investment proposition from scratch is extremely costly in terms of cash and management resource.

“We want to help a limited number of quality IFA firms to make this transition, without giving up their ownership and brand.”

The transition toolkit launches on August 2nd.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. What a total disgrace that the FSA allow this GROUP to drop companies, avoid liabilities and start again within a year.
    And to add insult to injury have the money to buy other companies whilst creditors are left high and dry…..
    Let alone the inability for clients to complain to the ombudsman as they have avoided that responsibility as well.
    Whilst the rest of the IFA community suffer the economy, additional contributions to the compensation scheme and constantly moving legislation…..

  2. Incompetent Regulators Awards Team 29th July 2010 at 2:57 pm

    To 1st Anon post. Don’t worry as all IFA businesses are worth naught thanks to regulatory intereference and with a bit of luck if we get a U-Turn which gvts are good at doing Towergate will lose any dosh they’ve put in for acquisitions and it’ll all be a waste of time.

    Rememeber the Gordon Brown U-Turn on SIPPs which screwed up many firms plans. Politicians cannot see beyond their own expenses/noses so our industry will change on a whim. You wait and see.

  3. I don’t understand how insurers put up with the Towergate business model, which to me appears to be “get rid of the small guys and increase commissions substantially.” At least that’s how it looks with general insurances.

    It’s like the King’s new clothes…

  4. Ancient Wisdom 30th July 2010 at 2:03 pm

    The FSA should restrict powers of Towergroup and Phoenix firms immediately.

    RDR and bans on commissions will finish off Towergate Financial and any other poor qulaity IFA group or network by 2015.- FACT.

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