Verso Wealth Management has appointed a former banker as chief executive as it seeks acquisitions in a rapidly consolidating independent financial adviser market.
The Sussex-based group, with assets of more than £1.8bn, has hired Alan Mathewson to lead the business and oversee the integration of the five financial services firms it bought last year.
The appointment comes as Verso prepares for further consolidation in the UK’s fragmented advisory sector and as smaller firms come under strain from the cost of complying with new rules. The industry faces significant regulatory changes in July when the Financial Conduct Authority’s consumer duty rules come into force, which the watchdog said will cause “a major shift” in financial services.
Graham Coxell, chair of Verso, said: “Growth will come very much from acquisitions. We’ve been very successful in acquiring five business over the past 18 months, and we are continuing to look for attractive acquisition opportunities.”
He said the opportunity for acquisitions “is significant”, noting that there “will continue to be consolidation” in the IFA market.
Coxell said the group’s deals to date have been IFA firms overseeing more than £350mn. “Going forward, we will maybe acquire slightly bigger [businesses] north of £500mn” he said. Verso could also acquire teams of IFAs from other firms, he added.
Mathewson was previously a senior adviser to private equity firm Bridgepoint. Prior to this, he was chief executive of UK wealth manager Brown Shipley. He also worked for two decades at Santander, running its UK wealth management and private banking division among other roles.
Verso, which is backed by private equity firm Cairngorm Capital, has grown its assets from a few hundred million less than two years ago through a series of deals. Verso’s rapid growth reflects a broader trend among private equity firms seeking to expand in the UK’s wealth management industry.
Many IFA firms are reassessing their business models and their charging structures because the new rules are expected to drive up costs. The FCA said in January that some firms were still behind in planning for the consumer duty rules, aimed at ensuring customers are treated fairly by financial services firms.
Verso is aiming to build a national wealth management group, with IFAs for financial planning situations that require face-to-face advice and digital services for more straightforward services.
The company’s executive restructuring is aimed at preparing Verso for embedding the acquisitions as well as future deals. Verso’s co-founder Andrew Fay will step down from the chief executive role but will remain on the board.
“As we grow, I need to make sure we have the right people in the team to manage the growth effectively,” said Coxell. “From a regulatory perspective, it is critical we can demonstrate the appropriate skillset and oversight . . . I do expect to further strengthen the team.”
