Towry Law has paid £1m for HambroFraserSmith in a cut- price deal
following HFS's calculation that its pension review costs were likely to
As part of the deal, HFS' assets were transferred to subsidiary Fraser
Smith while its liabilities, including the review bill, will remain part of
HFS, which is being liquidated.
Towry says it has kept the FSA informed of progress and has ringfenced HFS
to ensure it can meet its liabilities.
Last year, HFS was given a cash injection of £750,000 by a group of City
business men led by Rupert Hambro of Hambros Merchant Bank and former Abbey
Life chief Michael Hepher.
Their aim was to float HFS on the stockmarket in five years and to make it
the leading fee-based advice IFA.
But it is believed that Hepher and Hambro realised they could not achieve
these ambitions with a company the size of HFS and looked to merge with a
bigger player. They will no longer feature in future plans for the company.
Towry Law is in the process of absorbing Advizas, the financial services
arm of Hogg Robinson, which it bought in January. Fraser Smith will
continue to operate as a separate entity from Towry Law for the time being.
The deal brings Towry's salesforce to about 270 onshore consultants.
Chief executive Douglas Black says: “Hepher and Hambro came to the
conclusion that, to do the business they wanted, they needed to be much
larger as scale matters.”
A&B managing director Gareth Marr says: “This is a good deal for Towry and
must put them close to the number-one spot behind the networks.”