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Buttercase quits M2 over Towergate 'ties'
by Daniel Grote on Apr 29, 2009 at 10:45
Steve Buttercase has left M2 Financial to start his own firm after becoming disillusioned with the influence of parent company Towergate.
Towergate bought the Nottingham firm last August and Buttercase (pictured) said it had pushed into single-tied deals on the annuity and protection side of the business, which he claimed could threaten its independence in other areas of the financial planning process. ‘It never really grasped financial planning the way it could,’ he said.
But M2 managing director Mark Howard denied that any aspect of the business was tied.
‘M2 are not tied. We are independent and whole of market. That’s where we come from and that’s where we are going. I don’t know why he would say that,' he said.
Buttercase, who left M2 earlier this month, has tentatively named his new venture Sense Financial Solutions and will initially operate from his home near Nottingham. The fee-charging financial planning business will focus on high-net-worth clients with more than £100,000 to invest.
‘It will be a big shift. I’ve always thought it was the right way of doing things,’ said Butttercase, who worked as an IFA at M2 since 2002.
He said setting up the business would be a challenge but the difficult market conditions had not dented his confidence. ‘It’s a horrible environment, but it’s not going to get any worse and there are some terrific opportunities out there,’ he said.
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13 comments so far. Why not have your say?
Stephen Page
Apr 29, 2009 at 10:10
I agree with Steve Buttercase, never in my 12 years as a Financial Planner have I been in demand, clients need re-assurance and guidance, they can't get that from the internet - yet!
As long as he focuses on a 'planning style business', focusing on the clients goals and objectives, clients will pay the fees.
I disagree with the classification of £100,000 being High Net Worth.
Good luck Mr Buttercase, and enjoy the ride!
report thisJon Hammond
Apr 29, 2009 at 10:12
Well done Steve, what took you so long!
report thisLydia Molyneux
Apr 29, 2009 at 10:20
I knew Steve many years ago at Acuma. I'm sure he will succeed at whatever he does!
report thisM2 Adviser
Apr 29, 2009 at 12:11
Interesting comments from Mark Howard.
M2 called all its staff into a meeting on the 9th March 2009 and informed them that M2 was going single tied on annuities with the Pru and single tied on protection with Norwich Union! Mr Howard was there but he seems to have fogotten that?!
report thisEx M2 Adviser
Apr 29, 2009 at 12:13
Having worked at M2, I can confirm that we were told last year that a sinlgle tie with Norwich Union (protection) and Pru (annuities) would become the norm unless there were exceptional circumstances where whole of market could be used. ( so not a full tie, just tightly enforced direction)
And a commision uplift would of course be used to sweeten the shift for independence in these areas.
Oh and Mark Howard was in the meetings I was in as well so his memory does seem to be cloudy.
report thisM2 adviser
Apr 29, 2009 at 12:17
PS I forgot to say good luck Steve.
You are a man of high integrity and I am sure your new venture will succeed!
Keep in touch with us all!
report thisM2 IFA
Apr 29, 2009 at 12:40
Congratulations Mate. See you soon. You're not the first nor the last believe me !!
report thisSuffolk IFA
Apr 29, 2009 at 12:54
If a number of IFA firms are still being courted by M2 Financial (Towergate) for acquistion, as reported in New Model adviser on several occasions, I wonder how many of them realise what lies in store?
Are their firms to go single tie? Presumably Prudential and Norwich Union have shares in Towergate and as part of their deal they have insisted on a single tie deal? Do the principals of the firms being courted care? If so, I would suggest that they be careful who they listen to and get it all in writing to avoid the issue of 'memory loss'.
report thisM2 Adviser
Apr 29, 2009 at 13:10
The reason why all the top IFAs and founders of the company have left in recent years.
report thisMalcolm Coury
Apr 30, 2009 at 11:03
Stay in touch.
Regards
Malcolm
report thisM2 Adviser
Apr 30, 2009 at 13:02
I am very concerned to see Mark Howard's comments on FTAdviser.com today!
Why is he denying the meeting took place where we were all told that we would be single tied on protection and annuity business?
The room was full of advisers and Towergate officials and Steve Buttercase and Mark Howard were both there!
The meeting DID take place.
I am having real concerns about M2 Financial and Towergate at present if this is how they wish to conduct themselves!
report thisnick beattie
May 14, 2009 at 11:32
i think this is prejudiced because you're jealous that he took as many clients as possible with him, and because he was trying to do the best for his clients by browsing the market for the best deals, not just using one company which coulod screw everything up.
report thiswasone2
Jun 23, 2009 at 17:27
Seems like the same business model as applied aggressively to the Towergate General Insurance side - (massive movement of existing business and placement of new busines with in house or "tied" markets mainly for commission enhancements) has caused similar concerns in the IFA sector.
It succeeded there due to greedy vendors and gullible policyholders.
Good luck Steve B.
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