Wealth manager and IFA Sandringham Financial Partners has launched an acquisition programme for financial advisers and planners aiming to retire in the next few years.

The Huddersfield-based firm is targeting the estimated 2,500 remaining one and two man adviser firms where at least one person is near retirement.

The company, which has 181 partners, says the Partner Acquisition Programme is designed to appeal to planners and IFAs planning to retire in the new few years but who are concerned about how their clients will be looked after post sale.

The emphasis will be on acquiring fee income and not assets, says Sandringham.

Firms will be able to retain much of their fee income, including any growth, for at least two years and can maintain a link with clients for up to five years in total.

Under the PAP Sandringham says that rather major upheaval transitioning a client's portfolio to a new investment solution, as can happen in takeovers of adviser firms, clients’ investments can be left in situ "where appropriate", ensuring a "consistent experience for clients."

The programme requires a two-year lead time between the adviser signing up and wholly retiring. Advisers receive 100% of fee income at retirement and will continue to receive ongoing income over the course of the three years post retiring – reducing from 75% one year after completion, to 50% after two years with a final payment of 25% three years after completion. 

Two individuals have already signed up with the aim of 10 a year taking part.

CEO Tim 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 similarly prepare themselves. 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.

"We are aiming for partners who want to leave the industry but are concerned about how clients will be looked after. Some worry that clients may be hung out to dry if they sell to the wrong firm.”

Mr Sargisson said Sandringham would be “encouraging” planners to maintain a strong relationship with clients.

The Sandringham scheme is one of a growing number of acquisition and consolidation schemes offered by consolidators and acquisitive Financial Planning firms.