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Newell Palmer expansion plan boosted by Shipman takeover

by Jun Merrett on Jul 28, 2011 at 11:52

Newell Palmer expansion plan boosted by Shipman takeover

Newell Palmer Financial Planning has completed its fifth acquisition with the takeover of Tony Shipman Financial Services, which has £10 million of assets under management.

Worcestershire-based Newell Palmer gained 250 clients from the deal with the one-man band run by Tony Shipman, who is exiting financial advice ahead of the retail distribution review (RDR).

The deal was completed on 6 May, but both parties agreed to wait two months before making it public so Shipman could inform his clients of the move.

Garry Goodwin, managing director of Newell Palmer, said strong client relationships made Shipman’s firm a good candidate for acquisition.

‘This is typical of what we are seeing at the moment, an individual who has been in the business for 25 years and has really good client relationships, but is not qualified,’ said Goodwin. ‘Shipman told his clients he was not in a position to continue to help them in the post-RDR world and has introduced them to a company that will deliver what he has done in the past.’

He said: ‘We decided to take on the client bank predominantly because of the relationship Shipman had with his clients, and we felt we could build on that.’

Newell Palmer acquired Bristol-based Dando Associates in May 2010 and Marshallsay Mumford in May 2009 as part of its expansion plan.

The firm has also benefited from Barclays’ decision to axe its financial advice arm by recruiting one of its former employees. Paul Anthony Smith joined Newell Palmer in May after 22 years at Barclays.

3 comments so far. Why not have your say?

Joel Adams

Jul 28, 2011 at 15:10

Great to see other firms prospering. Not sure how you can wait 2 months before telling clients ...... I thought there was a regulatory obligation to tell clients about a change of controller / novation immediately?

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Garry Godwin

Jul 29, 2011 at 09:25

Thanks for your comments Joel.

As you might appreciate, the article from CityWire was not accurate, and sadly we had no way agreeing a draft proof before publication. We actually agreed not to issue any novation until after the two month period, post completion had elapsed. In this way, clients remained under the 'agency' of the existing adviser for the two months, the novation agreements were then issued.

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Adrian Smith

Aug 01, 2011 at 12:53

Excellent Gary, well done.

More power to the Regions!

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