The proposed intermediary group, ConsIFA, is gearing up for the next stage in its development with its plan to float on the stock exchange before the end of the year.
ConsIFA plans to grow by acquiring existing IFA firms and offering them a range of support services, while taking over their administration. Firms acquired by ConsIFA will do so on a cash-and-shares basis.
It is targeting three sectors of the industry: IFAs who have yet to establish a significant number of clients; IFAs in their late 30s or early 40s who have an established business, but want to be part of something bigger; and those with mature businesses who are looking to retire and transfer their client base.
However, David Hollingworth, mortgage specialist at London & Country, said: ‘I can see it could look like a favourable proposition for those looking to retire, but for others it will mean giving up ownership of their firm. ‘
ConsIFA has conducted due diligence procedures with three brokerages and has conducted talks with more than 30.
Colin Studd, director with ConsIFA, said: ‘We are waiting for the right moment to launch. When we have, there will be no limit to the number of firms we could look to acquire, but there must be a tremendous degree of compatibility on both sides.’