London-based financial advisory business Alexander House Financial Services is to become part of the CAERUS Capital Group after its advisors voted unanimously for the move, the firm said in a statement.

London-based financial advisory business Alexander House Financial Services is to become part of the Caerus Capital Group after its advisors voted unanimously for the move, the firm said in a statement.

“We needed a forward thinking, progressive network to support our endeavours and take us to the next level in our continued expansion, filling the advice gap left after the withdrawal of bancassurers and flight of other nationals to high net worth individuals following the Retail Distribution Review,” said Nick Kelly, chief executive of Alexander House.

The firm was established 18 months ago with the aim of addressing the needs of those customers seeking value for money financial advice, specifically the un-served middle that has been created as a result of RDR.

One of the unintended consequences of the RDR has been the advice gap, which has priced consumers out of receiving independent financial advice, creating a problem sometimes described as "orphan" clients.

Since the RDR was introduced last year, a number of banks have pulled out of offering advice, including Santander, Clydesdale, Yorkshire and Co-op, while others, such as HSBC, Lloyds and Barclays, only offer services to high net worth individuals. In addition, a number of financial advisors have increased their hourly fees, which has also exacerbated the problem.

Caerus Capital Group was established in 2010 to combine fund management with advice for the benefit of both advisors and consumers.