Client Background

An International Family Office with a London base was seeking to leverage investment expertise and diversify into retail advice by acquiring an IFA Business, a firm of high end independent financial advisers.

Business Issue

As a growing organisation the firm had to develop systems and controls that were appropriate to the expansion into the new sector; they were looking for a foundation business with systems and controls that were both robust and scalable.

Challenge

Having completed high level negotiations the business needed to check the detail. Acquiring a firm with either poor controls and/or a history of giving poor advice was out of question. Accordingly, the firm needed independent assurance from qualified experts.

Solution

Complyport helped the firm scope the due diligence process. Phase one focused on systems and controls (failure would stall phase two). The review, was undertaken by experts with senior IFA management experience. The objective was to identify potential gaps in systems and controls and advise on scalability issues. Only if successful would phase two, a sample of advice reviews across business lines, be implemented. Advice would be checked by those with advisory experience and at a minimum, qualified to level 6.

Business Benefit

Confidence in the outcome was key. As a new business venture, albeit in a related field, the firm needed to value the target; it could not afford unexpected outcomes. Through Complyport it was able to harness both regulatory experts and highly qualified advisers. The structure of the process was tailored to manage costs. The firm understood (if successful) future expansion would lead to development of the target’s controls. The gap analysis fed directly into its business plans.

Further Information

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