UK wealth manager sets up IFA network

Service is a ‘way of increasing funds under management’

It will help financial advisers who wish to stay independent but are looking for a “cheaper, more structured, technology-led way of controlling and developing their business”.

The network will also appeal to advisers who eventually want to sell or buy businesses.

This news comes just days after International Adviser reported that RC Brown had completed the acquisition of Stourbridge IFA firm Portcullis Financial Planning for an undisclosed sum.

Removing hurdles

Alan Beaney, chief executive of RC Brown, said: “We have deliberately created an entity where advisers will all use the same tech-led systems and have brought in carefully selected expertise rather than reinvent the wheel, so everyone benefits from consistency and economies of scale.

“This also means that firms can network with others within the group knowing that many of the hurdles of transferring business have been removed, with the added advantage that clients are familiar with systems.

“We are offering a portfolio of options to cater for advisers across the spectrum but anticipate that these services should particularly suit newer or smaller IFAs as we offer a safe environment with additional structure and support where all the systems are in one place.

“We have very much aimed to eliminate the distractions of setting up, so back office systems are on the shelf and ready waiting so to speak.

“This service should also provide a helping hand to advisers who are eyeing retirement and would like to put their house in order and then perhaps forge links with like-minded firms with compatible systems etc.”

Different options

Option one for financial advisers is to become an appointed representative of the network.

All members will be fully independent with back office CRM and compliance services and a range of optional extras such as; a fully branded secure portal with mobile access, full white labelling services and access to a selected a discounted para planning service.

Cost for this option will be 10% of member firm’s turnover and 80 basis points for DFM services including platform charges.

Option two comprises a white labelling only service where firms simply create ‘trading as’ investment subsidiaries of RC Brown, under its regulatory umbrella, but using any name and brand they choose.

Cost for option two is 30bps for incubator clients, 80bps for full DFM white labelling including platform charges and set up £5,000 ($6,568, €5,550) + VAT.

Remain a DFM

RC Brown’s chief executive also said that the firm is sticking with its roots.

“From our own perspective, we are not in the business of being an IFA,” Beaney added. “We remain a DFM and this service is ultimately a way of increasing funds under management.

“We are targeting advisers who opt in to remain independent but at the same time encouraging them to invest with RC Brown.

“At the end of the day, it’s simply RC Brown behind the scenes and if they don’t wish to invest with us then we can just administer assets for them like a platform does.”

Service details

Option 1 consists of:

  • Appointed representative of the network;
  • Minimum £15m assets under management, £110,000 annual turnover;
  • Fully independent, freedom to choose any/all product provider partners;
  • Back office CRM, admin, fee collection, professional indemnity insurance and compliance services included; and
  • Optional extras include: Branded portal, white labelling, bulk discounts, sell/buy client books to other network members and discounted third party paraplanner services.

Option 2 consists of:

  • Own branded ‘trading as’ subsidiary of RC Brown;
  • Minimum £15m assets under management;
  • Branded portal (powered by Moneyinfo);
  • Branded application forms, client reports and stationery; and
  • Optional extras include: input into asset allocation of portfolios and bulk discounts.

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