Tavistock announced today that it has entered into a “conditional contract” for the purchase of the holding company, which could see a combined turnover of £30m and a boost in growth from £400m to £3bn.
If the acquisition is granted approval from the Financial Conduct Authority (FCA) and from shareholders, the combined business will have 300 UK-based financial advisers with around 65,000 clients.
Last year, the FCA banned Financial Ltd from taking on any new advisers for four and a half months after it failed to ensure the risk of mis-selling of products was minimised through adequate supervision and controls.
“The transfer of ownership marks the beginning of an exciting new era for our business,” said the managing director of Standard Financial Group, Brian Galvin. “I expect both member firms and staff to see this as a very positive development.”
Galvin and chief executive of Tavistock Investments Group, Brian Raven, expect the deal to help establish Tavistock as a national financial services brand.
Tavistock has conditionally raised a minimum of £2.7m to provide additional regulatory and working capital for the acquisition.
It has also arranged a placing of 135 million in new ordinary shares and an open offer of 30.5 million shares, which all stand at 2 pence per share.
The approval of shareholders will be sought at a general meeting on 12 February.
