Posted on: 10 November 2011
SimplyBiz launches new ‘Practice Buyout’ Proposition
SimplyBiz have announced the launch of a new proposition for IFAs planning to transition their business in preparation for the RDR.
The Practice Buyout initiative provides advisers with the ability to transfer clients to the non-advisory service Capital Reward Plus (a division of the SimplyBiz Group), or where ongoing advice is required, one of 12 pre-selected local IFA firms who have signed up to receive clients under the scheme.
Practice Buyout will be primarily targeted at advisers retiring from the industry and those segmenting their client bank in advance of the RDR. Practice Buyout will also cater for those firms who will be removing their investment permissions to concentrate on other business areas post RDR.
SimplyBiz Joint Managing Director, Neil Stevens, commented “The average retirement attrition of approximately 5% each year as advisers finish long and successful careers had been a key driver for us developing this new service. There are many companies marketing attractive buyout terms but these are often quite different when the adviser sees the detail. We will be providing a clear and transparent deal; one the adviser can trust and rely upon.”
The scheme pays 70% of renewal income to the IFA for five years, in addition to 20% of the income created by new business from their existing client bank.
Antoinette Duffin, Head of Capital Reward Plus, commented:
“There is a variety of reasons why an adviser might choose to transfer all or part of their client bank, but the Practice Buyout scheme ensures that they can rest assured that their former clients are continuing to benefit from the appropriate level of service and, where needed, financial advice. The rate of income paid to advisers on the sale of their client bank is highly competitive and we feel that this initiative is a further demonstration of our dedication to supporting IFAs from the moment they join the financial service sector, through their various business transitions and evolutions up until the time they choose to leave.”
Capital Reward Plus, the only subsidiary of The SimplyBiz Group to deal directly with consumers, launched in 2007 and has provided non-advisory client services support to over 3000 clients.