Wednesday, September 21 2022

UK financial advisory firm Truly Independent Ltd is set to embark on a series of acquisitions with three deals over the next few months, International Advisor understand.

The companies in question are based in Wales, England and Scotland.

Truly Independent Ltd could not name the companies or talk about the deals in detail – but said the majority of the deals would be asset acquisitions.

Brian Swanson, director of business development at Truly Independent, said AI“Advisors will join the Truly Independent brand, back-office system and platform. They will be completely independent while preparing for a stress-free exit from the industry.

“We will take care of all regulatory matters, provide professional indemnity (PI) insurance, systems, services and support functions until the adviser leaves. We want to increase the advisor pool to 100 by the end of the year, then increase it again by 50/60 next year, if not more.

“My targets are open. We have numbers we want to hit, but we don’t want to stop there. We want to grow funds on our platform to £300m in three years. We want to reach £3bn sterling (3.48 billion dollars, 3.49 billion euros) of assets under management in five years.


Truly Independent isn’t the first company to enter the acquisition market – and it’s done a few small deals already, but it’s keen to share its succession plan for outgoing advisers.

Swanson said: “Over the past three years the company has grown exponentially in terms of attracting advisors. Then we had people contacting us to take over their books, whether they were IFA or working for competitors.

“We have built strong cash flow and can now look to acquisitions to support growth. We are quite comfortable borrowing money if we need it rather than looking for investors. Maintaining private ownership is important to the business.

“We have the 4×4 succession plan. Advisors can sign a contract with us and the process of selling the client book takes place four years before retirement. We pay four times the renewal (based on an ongoing advisory fee of 0.5% per year). This is equivalent to 2% of the AuM.

“They can do the process one or two ways. They can join us for a tailor-made retirement or join us first as a self-employed person and retire after four years. Either way, their customers will be served by Truly Private Customers (TPCs). »

TPC is a style of trading from Truly Independent specifically set up for clients of retiring advisors. TPC’s clients are supported and managed by separate employee advisors within the company, unlike its IFAs who are self-employed.

Swanson added, “Over the next two years, many of our advisors will reach retirement age. We seek to integrate young Advisors into Truly Private Clients to provide the most preferred advice and face-to-face support to established clients of Retiring Advisors. They will follow the outgoing councilors for three months before retiring. It will be a natural succession for advisors and clients.


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