AFH Financial acquires IFA firm fined for Ucis misselling
AFH Financial Group has acquired Cheltenham-based IFA firm Specialist Solutions in a deal worth up to £725,000.
In April 2011, the Financial Services Authority fined Specialist Solutions £35,000 for promoting unregulated collective investment schemes (Ucis) to clients without properly assessing suitability.
AFH Financial will pay an initial consideration of £100,000 for the firm, with up to £625,000 in deferred consideration payable over the next two years.
As part of the agreement, AFH is purchasing the assets and goodwill of Specialist Solutions but is not assuming any advice liability incurred prior to the acquisition. (article continues below)
Specialist Solutions has approximately £80m of funds under advice.
The acquisition is AFH’s eighth since its IPO in June last year and will bring its total number of advisers to 88, up from 53 at the time of the IPO. The new advisers will operate out of AFH’s headquarters in Bromsgrove.
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