The increasing costs of compliance have forced two Guernsey-based financial services comp- anies to merge, and form an alliance with a third.
Charlesworth International (Guernsey) and Clarke Middleton Associates have merged to form Kensington Wealth Management. The new operation has formed an association with The Kensington Corporation, an international private trust company based in Guernsey with offices in Alderney, Switzerland and the Caribbean.
"We believe that the coming together of the three existing practices gives us greater ability to provide a more holistic and highly personalised approach to the increasing complexity of our clients' financial affairs,” said Michael Clarke, founder and principal of Clarke Middleton.
Clarke will head up the merged operation, along with Martyn Tanguy, managing director and founder of Charlesworth and Karen Harris, an investment adviser.
According to Clarke, one of the advantages of strategically consolidating the three operations is the regulatory recognition that it brings. Kensington Wealth Management benefits from three licences - insurance intermediary, investment and fiduciary licences - through membership of the Kensington Group. It also has representation in the UK, through a fully-authorised IFA.
As well as personal financial planning and corporate pension scheme advice, the company will offer trusts, including Retirement Annuity Trust Schemes (RATS), corporate administration, and investment, insurance and personal pension advice to a largely Guernsey-resident client base.
The new company is also able to give advice on specialist insurance risks, such as professional indemnity insurance, directors and officers' liability insurance and warranty insurance.
"We are actively turning the challenges of increased compliance and regulation faced by our sector into a new opportunity," said Norson Harris, the founder and managing director of The Kensington Corporation.
"Over the past few months of planning we have discovered an increasing number of synergies between our companies which, when combined, will make us a very strong force in the IFA market."
The new company feels that it will now be in a position not only to cope with current compliance demands but also to cope with possible demand in the future.
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