“This strategic alliance further strengthens Bellpenny’s client proposition. It will enable clients to take advantage of Brooks Macdonald’s research-driven approach to delivering strong and consistent risk-adjusted returns," Kevin Ronaldson, chief executive of Bellpenny, said in a statement.

The agreement comes at a time when the wealth management advisory sector has seen some consolidation as new UK regulations – the Retail Distribution Review – have come into effect.

“We were delighted that they have chosen to work with Brooks Macdonald and that we are in at the beginning of their journey to become a major force in the advisory space in this new post-RDR world. We believe we are able to deliver to their clients the service and investment management expertise that we have been able to demonstrate to others over a sustained period,” Andrew Shepherd, joint managing director of Brooks Macdonald, said.

Brooks Macdonald in March reported strong growth for the second half of 2012, saying that its total discretionary funds under management grew by £1.1 billion (around $1.65 billion), an increase of 31 per cent. Excluding the acquisition of Spearpoint, as reported by WealthBriefing in November 2012, the firm saw £414 million of organic and market growth, an increase of 11.8 per cent, in the second half of the year. Total funds under management stood at £4.620 billion at 31 December 2012.