Australian life assurer AMP has confirmed it will acquire UK-based independent financial adviser Towry Law for £75.7m, including the firm's £51m pension liability.
AMP managing director Tom Fraser, who will have overall responsibility for Towry Law, said the acquisition was part of AMP’s aim to become the “customer’s window to the financial world” by extending distribution competencies.
The group also aims to launch a portfolio management platform, implement a service company and attain a substantive presence with leading 500 IFAs.
According to Fraser, Towry Law has the potential to provide immediate scale as one of the top five UK national IFAs.
AMP will offer Towry Law 180p in cash for each share. The Investors Compensation Scheme (ICS) will oversee the pension transfer review and Towry Law, supported by AMP, will commit up to £18.5m towards these and other costs.
The adviser will remain operationally independent and its management team is to be strengthened by the appointment of John Simmonds, currently head of financial planning at AMP UKFS. AMP’s UK current subsidiaries include Henderson, Pearl, NPI and Cogent. By Janet Du Chenne
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