Close Asset Management, part of the UK-based financial services group Close, has acquired the client book of an unnamed retiring regional IFA as part of aggressive growth plans to accumulate £6 billion ($8.7 billion) in advisor assets over the next 18 months, Citywire reports.

This first acquired client book could garner Close up to £50 million in assets, according to the publication. Under the deal Close will pay between five to six times trail income or fees for the clients that opt for its discretionary service and 2.5 to three times recurring income for clients that opt for other services, the report said.

Close said it will approach the IFA’s clients towards the end of a 12-month transition period to offer its discretionary service. Clients for whom a discretionary service is not appropriate will be offered other financial planning services, such as pension planning.

Close is keeping the identity of the IFA under wraps for the time-being while the advisor informs their clients of the change.

Stuart Dyer, Close Asset Management’s head of intermediary acquisitions described the deal as quite small but “very neat and tidy”, adding that the firm is “prepared to look at IFAs of all sizes, provided they have a good business.”

Close Asset Management is understood to be looking to acquire the client books of up to 40 IFAs as part of an acquisition campaign aimed at capitalizing on the fallout of the UK regulator’s Retail Distribution Review.

Many commentators predict that the package of reforms contained in the RDR will have the unfortunate side effect of pushing some IFAs out of the industry due to the increased costs associated with compliance and new minimum qualification requirements. As such, a number of firms are seizing the opportunity to snap up the client books of IFAs looking to exit the industry, many of whom may decide that this is the best juncture for them to take early retirement.