MDS to launch book buying service

Licensee application and compliance services My Dealer Services (MDS) will launch a service to bring advice book buyers and sellers together, as advisers exit the industry.

MDS said a survey it ran found that 42% of advisers confirmed they would acquire books of business to facilitate growth.

Alex Euvrard, MDS director, said: “Revenue growth will be an industry imperative as the cost of providing advice grows and standing still is not an option in this environment... hence the importance of acquisition to underpin business growth”.

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Euvrard said the practice of engaging an agent or broker to facilitate a commercial outcome when buying or selling an advice business or book of clients was no longer appropriate.

“Unfortunately, far too often this is undertaken at the last minute and the resultant lateness of the transaction results in less than satisfactory outcomes for buyers, sellers and the acquired clients,” he said.

“In a time poor, highly regulated and scrutinised industry this practice is unsustainable and fraught with unnecessary risk.”

Euvrard said the service would provide an accessible, confidential and neutral facility much earlier in the process of bringing buyers and sellers together.

“Buying or selling a financial advice practice or book of clients comprises many pieces to an often complex and emotionally charged undertaking,” Euvrard said.

“This is especially true for mature age advisers that have devoted a lifetime of endeavour to their business.”

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There is a book and then there is a book. IF..i bought a book, it would need to be payed for through the comms. There is NO assurance the clients would stay. it would need to prove it self. Ill buy the book, and pay it off through a 50/50 comms deal. imagine paying 100k for a book and most of the clients leave.or worse look back laws

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