Bristol-based wealth firm Whitechurch Securities is aiming to recruit advisers who are looking to exit the industry, with a view to acquiring their client book after retirement.
The company has just completed a strategic review of its advisory business – Whitechurch Financial Consultants – and is introducing changes to make the division profitable.
Gavin Haynes, managing director at Whitechurch Securities, told Wealth Manager that the company has introduced two new initiatives.
While emphasising that he does not want the company to be seen as a consolidator, Haynes (pictured) said that one of the new services it will offer is for advisers to become appointed representatives of the firm.
‘One thing we’ve done is selectively take over client banks of advisers looking to exit the industry. What we’ve really found is that advisers became familiar with Whitechurch, then when the adviser retires, that’s much better for all parties. The adviser knows how their client is going to be treated under Whitechurch,’ he said.
‘After the strategic review, we took it one step further. For advisers who are looking for an exit route, we will offer a select number to become an appointed representative of Whitechurch. They will become restricted and work with the investment team.
‘That’s the best possible way of ensuring their clients receive a consistent approach before they exit the industry.’
He said that the company will target four or five advisers over the next two to three years and offer them compliance and back office functions while they maintain their independence.
‘We didn’t just want to buy client banks, we want to work with the advisers,’ Haynes added.
The second change the company implemented is making a ‘conscious effort’ to take people on at a graduate level and train them up, rather than bringing in established advisers ‘set in their own ways’.
In its latest results for the 12 months to 28 February, the company revealed that it saw net inflows of £21.5 million, which contributed to an increase in assets of 15% to £388 million. Pre-tax profit was £1.2 million on turnover of £6.3 million.