Sandringham Financial Partners has unveiled its partner acquisition programme, which targets advisers wanting to leave the industry.
The programme requires a two-year window before retirement to allow the adviser enough time to inform their clients and ensure a smooth transition.
The timeline aims to mitigate the otherwise inevitable mass asset migration for clients who may need to re-platform once their adviser retires.
At retirement, advisers will receive 100% of their income, based on how much their client business is producing, Sandringham confirmed to International Adviser.
Additionally, they will receive an ongoing fee for the three years after they leave the sector, scaled from 75% one year after completion, 50% in the second year and a final payment of 25% in the third year.
Advisers need retirement planning too
Sandringham will take on the advisers’ client base, and customers will be able to choose whether they would like to receive financial advice face-to-face or remotely.
The firm said two of its partners have already embarked on the retirement programme.
Tim Sargisson, chief executive of Sandringham, 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.
“This is perhaps unsurprising given the current dearth of appealing options for an adviser considering retirement, many of whom must choose between a disruptive transition for their clients or a reduced remuneration package.
“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,” he added.
