Former Sesame Bankhall Group director Nick Kelly is to launch a national IFA and is understood to be in talks to recruit around 200 advisers for the firm.
Kelly’s new venture, Alexander House Financial Services, will launch on 1 May, pending authorisation from the Financial Conduct Authority. It will offer independent advice on a face-to-face basis and by phone and the internet.
It is understood Kelly, who was distribution director at Sesame until November 2012, will be chief executive of Alexander House. He will be joined at the firm by former Sesame head of customer services Jane Hodges, who will be chief operating officer.
A source close to the situation said Kelly (pictured) was in talks with 200 advisers from up to 15 firms about joining the national.
Alexander House wants to recruit chartered financial planners to be ‘virtual boffins’, providing individual and corporate clients with advice online and over the phone, and diploma qualified advisers to provide face-to-face advice.
Advisers joining the firm will be able to work from their own office or be based at the firm’s Kent headquarters.
IFAs will be offered shares in Alexander House and will be given the opportunity to buy their client book from the firm if they choose to leave.
According to documents filed with Companies House, the firm was incorporated on 8 January 2013. It has one initial shareholder, Capital Kinetics LLP, a corporate finance firm based in Milton Keynes.
Kelly left Sesame as part of a company reshuffle in November 2012 having spent more than four years with the network. He was replaced by ex-Lighthouse Advisory Services managing director Stephen Gazard.
David Ingram, partner at consultancy Aim Two Three, said Kelly’s national could thrive in the current climate.
‘There’s definitely room for a national working on an independent basis, providing the fee structure is reasonable,’ he said. ‘There is a tremendous advice gap and the economies of scale that a national can bring to the marketplace suggest it is possible to start filling that advice gap.
‘There is also a lot of adviser demand for a national; there is a lot of disenchantment around networks and a lot of one man bands are currently struggling with costs and would want to join a national. It wouldn’t surprise me if it was a success as Nick Kelly has a good profile in the industry, a lot of people know and trust him.’
Kelly declined to comment.