Acquisition of IFA business of Co-operative Bank Plc


 
TIDMSAM 
 
For immediate release: 29 September 2010 
 
                        Syndicate Asset Management Plc 
 
                  ("Syndicate", the "Company" or the "Group") 
 
         Acquisition of the IFA business of The Co-operative Bank Plc 
 
The Directors of Syndicate Asset Management Plc (AIM:SAM), the fund management 
group, are pleased to announce that Ashcourt Rowan Financial Planning Limited 
("Ashcourt Rowan"), a part of the wealth management division of Syndicate, has 
reached agreement to acquire the IFA business and certain of the assets of 
Co-operative Bank Independent Financial Advisers Limited ("CIFA"), a wholly 
owned subsidiary of The Co-operative Bank Plc ("Acquisition"). 
 
CIFA, which has been established for more than 20 years, has approximately 
55,000 customers with funds invested of approximately GBP1.0 billion. CIFA 
currently employs 52 highly qualified fee generating IFAs and additional 
associated sales managers and support staff. A significant majority of CIFA's 
IFAs operate in the North East and North West of England, as well as the 
Midlands and South of Wales, and will complement Ashcourt Rowan's existing 
network of IFAs that have an established presence in the South of England. The 
Acquisition will bring Ashcourt Rowan's funds under management and influence to 
in excess of GBP3.3 billion and funds under management and influence within 
Syndicate's wealth management division to over GBP4.3 billion. 
 
Under the terms of the Acquisition, Ashcourt Rowan will pay The Co-operative 
Bank a nominal undisclosed sum for the IFA business and certain of the assets 
of CIFA and GBP450,000 in cash for all of CIFA's trail commission receipts, to be 
paid as to GBP250,000 on the first anniversary of completion of the Acquisition 
and GBP200,000 on the second anniversary. CIFA's IFAs, Sales Managers and support 
staff will transfer to Ashcourt Rowan under the Transfer of Undertakings 
(Protection of Employment) Regulations (TUPE) from completion, which is 
expected on 1 October 2010, together with CIFA's client database and trail 
commission. 
 
During 2010, Ashcourt Rowan has rapidly established itself as a leading name in 
the field of wealth management providing financial planning, financial advice 
and asset management services to over 20,000 clients in the UK through its 
network of 17 offices. The Acquisition forms part of Syndicate's stated 
strategy of broadening Ashcourt Rowan's network of financial planners across 
the UK. 
 
As well as CIFA's traditional IFA business model, CIFA has also successfully 
differentiated itself in the market through running regular seminar programmes 
and establishing extensive corporate partnerships. 
 
Commenting on the Acquisition, Mark Cheshire, Ashcourt Rowan's chief executive 
said: 
 
"I'm delighted to add such a high calibre team of IFAs, Sales Managers and 
support staff to our business. They have the right balance of knowledge and 
experience to be able to best advise clients on the many sensitive issues that 
individuals and families have to address when planning for their near, mid and 
long-term financial futures. We believe the systems and culture that have been 
established within Ashcourt Rowan will provide an ideal environment in which 
the CIFA team and their clients can prosper. The Acquisition is also an 
important step in delivering the strategic goals agreed with Syndicate for 
Ashcourt Rowan." 
 
Commenting on the Acquisition, Rod Bulmer, Managing Director, Retail at 
Co-operative Financial Services (CFS) said: 
 
"Throughout this process, we have sought an established IFA business that was 
committed to the market with an aspiration to retain existing CIFA client 
relationships. Ashcourt Rowan was assessed against our own core values and 
their determination to offer an excellent financial planning service made them 
the right choice for our IFA business." 
 
                                    -Ends- 
 
Notes to editor 
 
About Syndicate Asset Management Plc 
 
Syndicate Asset Management Plc is a publicly quoted holding company for an 
integrated group of specialist investment management businesses that provide 
fund management services to institutional and retail clients. Businesses within 
the Group include EPIC Investment Partners, Savoy Investment Management, and 
Ashcourt Rowan. 
 
Further information: 
 
Syndicate Asset Management plc 
Jonathan Freeman (Syndicate Group CEO)                    Tel: 020 7659 8060 
Mark Cheshire (Ashcourt Rowan CEO)                        Tel: 020 7553 2307 
 
Cenkos Securities plc 
Stephen Keys/Julian Morse                                 Tel: 020 7397 8900 
 
GTH Communications 
Toby Hall/Christian Pickel                                Tel: 020 3103 3903 
 
 
 
END
Syndicate Asset Management (LSE:SAM)
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