Sandringham Financial Partners has launched its Partner Acquisition Programme designed for advisers retiring from the profession.
Sandringham CEO Tim Sargisson (pictured) described the new proposition as "unique", and said it would mean minimal upheaval and impact on clients while also remunerating advisers well into their retirement.
Many retiring advisers face mass asset migration for their clients who need to re-platform upon their adviser's retirement, such as in cases where independent firms are sold to restricted consolidators.
Under the Partner Acquisition Programme, however, clients' investments can be left alone where they are deemed to be appropriate, rather than transitioning a portfolio to a mandated investment solution.
Advisers taking part in the programme will receive 100% of income generated from the acquired business at retirement, then continue to receive ongoing income over the course of three years after retiring, scaling from 75% one year after completion to 50% after two years and a final payment of 25% three years after completion.
The programme requires a two-year lead time between the adviser engaging fully and retiring. Sandringham said this is to provide the adviser with plenty of time to inform their clients of the change and ensure the process is handled smoothly on all sides. Two Sandringham partners have already begun the process.
Sargisson told PA he hoped 10 advisers who were "right for the business" would enter the programme each year. He said he wanted to work with firms with their businesses "in order", meaning firms that held their records on a database and had a good working relationship with their clients.
The CEO said Sandringham would only be acquiring only a firm's assets through the programme and would not be taking on potential past liabilities.
Sargisson said: "The sad irony of the advice profession is that many advisers spend their lives ensuring their clients are well-prepared to enjoy a financially secure retirement but fail to prepare similarly for themselves. This is perhaps unsurprising given the current dearth of appealing options for an adviser considering retirement, many of whom must choose between a disruptive transition for their clients or a reduced remuneration package.
"The Partner Acquisition Programme has been borne out of the need to properly and fairly remunerate retiring advisers whilst also ensuring that their client relationships, which have been so carefully developed over the years, are properly protected."
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