Asset management giant Abrdn has announced it will be making changes to its current financial planning model.
Following a review of its current financial planning model, Abrdn confirmed to International Adviser that it will focus the division on two business models: the financial consultant model and the regional advice model.
A spokesperson for Abrdn said the financial consultant model will serve “clients with straightforward and more simple needs which we’ve proven works well in the last 12 months and has been well received”.
This comes nearly a year after the Financial Conduct Authority (FCA) announced it will assess the advice-guidance boundary in a wide-ranging review of the financial advice market and also launched a consultation paper on proposals for a separate, simplified financial advice regime.
The spokesperson added that: “The regional advice model will serve our clients with more complex needs and they will continue to be advised and serviced by our regional advice teams.
“We’ve also looked at where our current clients are and changing our structure to a two region model; the north and south, to be close to our clients and to market opportunities for future growth. We have reviewed our office footprint, looking at client locations, colleague use, appropriateness of the building and costs.”
The firm said that by the end of the year – it will be closing its financial planning Reading and Sheffield offices, as well as exit the Bristol office, but this will remain part of the Abrdn group.
Staff in its Leeds office will be relocating to the Interactive Investor Leeds office and will also have additional office space with Interactive Investor in Manchester. Abrdn bought Interactive Investor in 2021.
The spokesperson added: “In parallel, we will be putting in place arrangements for client and colleague meetings in locations where we don’t have an office. There are no immediate changes at this stage, office closures will be completed by year end.”
Restructuring across all businesses
This comes at a time when Abrdn has been busy restructuring many parts of its business.
In May 2023, Abrdn launched AdviserOS to bring together its existing platforms and services.
Two months prior, international private banking and asset management group LGT agreed to acquire the UK and Jersey discretionary fund management business of Abrdn for £140m ($168m, €159m).