M and A

BEST OF 2013: Consultant Sees Further M&A In UK Wealth Market, Frets Over "Orphans"

Tom Burroughes, Group Editor, London, 2 January 2014

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Discretionary fund
managers

One specific section of the industry where Mr Spence
believes that firms have not fully understood the threat to their business of
large consolidators are discretionary wealth managers that rely on IFAs for a
lot of their custom:

“Consolidators out there pose a huge threat to erase
discretionary fund managers who are dependent on the IFA sector. Far too many
DFMs see what they are doing as just renting client money for a period of time,
but that is not good enough,” he said, “If consolidators buy whole groups of
IFAs, their IFA funds are likely to haemorrhage.”

Harrison Spence is going to stay busy.

 

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