Chartered financial planning firm Fairstone has launched its Individual Buy Out programme (IBO).
Eight deals have already confirmed.
The launch builds on Fairstone’s Downstream Buy Out programme for larger IFA firms. The IBO deals secured at launch see a total of £1.5m fee revenue and £130m AUM to Fairstone.
The IBO programme is a unique structure in the market which enables individual advisers to build a long term, tax-efficient retirement fund and ensure continuity of service for their clients.
Under the agreement, IFAs will receive an initial capital sum, as well as a proportion of ongoing fee revenue for an agreed period, typically 15 years. Fairstone will assist with all succession planning, including candidate selection, legal, technical and regulatory support.
On joining the programme, Devon-based IFA, Paul Clarke, who focusses on retirement income and estate planning, commented: “Joining Fairstone’s offering for individual IFAs provides me with the certainty of a structured exit strategy, with additional financial security for my wife and the peace of mind that my clients will continue to benefit from first class advice.”
Russell Waller, a City of London-based adviser, said: “Signing-up to the Fairstone IBO worked well for me as it secures my eventual exit strategy and creates a succession plan at the point when I choose to retire. This is vital for the future of my clients. In addition, I take a great deal of comfort from the fact that my beneficiaries will be compensated should the unforeseen happen and I pass away in retirement.”
Other individual advisers who have joined the IBO include City-based Bob Reich and Jacqueline Robinson and Brandon Pillar and Colin Mitchell, both based in Devon.
CEO of Fairstone Lee Hartley (pictured) added: “Our proposition enables quality advisers to realise the value of the business they have built, as well as securing a lucrative long-term income post-sale. Our research suggests that the best time to sell a business is much earlier than many advisers believe, and we are now able to help these individuals through that process and beyond.
“Fairstone’s new proposition addresses an often-overlooked segment of the market, providing individual advisers with an attractive retirement solution where their clients costs will not increase and client choice will not reduce. We look forward to welcoming those individuals who have the vision to grow their business with Fairstone and secure an exit in the knowledge that their clients are in the best possible hands.
“Each adviser which joins Fairstone under the IBO programme will receive the full support of the company to enable them to grow their business and ultimately transition into retirement through a managed process. With these tools in place, there is every opportunity for advisers to achieve significant growth leading up to retirement within a highly supportive framework.”
