London-based IFA sells £16m client book – City Wire – 02 June 2016


London-based Capital Asset Management has sold a client book with assets under administration of £16 million to Berkshire-based Ascot Wealth Management for an undisclosed sum.

The legacy book consists of 80 clients Capital no longer has an active relationship with.

The majority of these clients will be taken on by graduates at Ascot who have recently gone through the company’s training academy and are now registered advisers.

Alan Smith (pictured), chief executive of Capital Asset Management said it was better for his own company to be moving away from the clients the firm does not have an active relationship with.

‘It is unfair at the moment, that our active clients are effectively cross-subsidising these non-active clients,’ he said.

‘We have taken the decision to focus exclusively on our target client market and ensure that we deliver a world class service to them.’

He added it was important for him that these clients would be served by an independent firm.

‘A number of our historical client relationships have more straightforward needs and we felt could be better served by an independent advice firm, designed to meet such requirements. Ascot is set up for a better-suited proposition, and can deliver that profitably,’ he said.


Ascot Wealth Management managing director Mark Insley, who set the firm up in 2011, said the deal fits well with Ascot taking on so many new advisers.

‘For us it’s great. We are just at the point where previous graduates are registered with the Financial Conduct Authority so lots of those clients will go directly to them rather than to me,' he said.

Insley explained the book is in two sections. Clients who fall under schedule one are on adviser fees already, and the second part are still paying on legacy commission.

‘For schedule one we will see all of them within the first three months. Schedule Two is more of a mixed bag and we will probably take a bit more time with them but we plan to get all of those on to adviser charging as well rather than legacy commission,’ he said.

The clients that are moving from Capital to Ascot have a two-week window to end their contract. This will be followed by three months where advisers will meet clients. If a client is unhappy with the advice offer they will still be able to leave in this three month period.


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