London-based Capital Asset Management has struck a deal with a local accountancy firm to advise 15 clients with £10 million of assets.
Under the deal Capital will provide financial planning services to Islington-based Barcant Beardon’s high-net-worth clients following the accountancy firm’s decision to stop giving financial advice due to the retail distribution review.
‘They decided it was better to focus on what they do, which is accounting and tax,’ said Capital chief executive Alan Smith (pictured).
‘The deal was completely unsolicited. They needed someone and asked if we could come to some sort of arrangement. They are looking to offer clients a good service: it’s not about fee-sharing.’
Smith said many of the clients Capital was gaining had little experience of financial planning.
‘Barcant Beardon has quite a good client book of people who never really engaged in financial services, it was more of a reactive service,’ he said. ‘Barcant Beardon can provide our services as complementary to their own.’
Smith said Capital planned more deals this year to grow assets under advice from £125 million to £200 million.
‘This is the first of several deals we will complete this year,’ he said. ‘I’d imagine we would not be far off £200 million by the end of the year if a few other things come off.’