Listed IFA business gains ABS licence to launch law firm

Print This Post

By Legal Futures

28 June 2013


Wealth management: ABS won’t compete with law firms

A firm of midlands-based financial advisers has received approval to set up an alternative business structure (ABS) so as to extend its service to existing clients and drive revenue growth.

AFH Legal Ltd – a wholly owned subsidiary of listed independent financial advisory and wealth management firm AFH – has brought in two solicitors to run the firm, one of whom has been supporting the group’s trust and estate planning advisers for the past 18 months.

However, the firm will not be marketed externally – the company said it has “no wish” to compete with solicitors’ firms – and will only provide advice to AFH clients in order to bring in extra revenue.

AFH is a highly acquisitive, multi-million pound business. Chairman and chief executive of AFH Alan Hudson said: “Wills, trusts and estate planning forms the corner stone of professional financial planning for clients. The addition of an in-house legal services division, regulated by the Solicitors Regulatory Authority, will prove to be of tremendous added value for our advisers and clients alike.”

Error, group does not exist! Check your syntax! (ID: 14)

AFH currently works with a number of professional connections on a joint venture basis, the largest of which is a solicitors’ practice. “This will be unaffected by today’s announcement as the primary motivation for the original relationship was to establish a wealth management arm to their business. AFH remains committed to continuing to develop these relationships.”

It follows in the footsteps of Leicester-based Bobby Dhanjal Legal Services and BlackStar Legal as financial advisers setting up a legal arm.

Also newly licensed by the Solicitors Regulation Authority as an ABS – as of 31 July – is Birmingham law firm Tyndallwoods. Director Judy Dyke said the sole purpose of converting was to enable her non-lawyer conveyancer husband Martin and finance director Steve Harris to become managers.

Tags: , ,



Leave a comment

* Denotes required field

All comments will be moderated before posting. Please see our Terms and Conditions

Legal Futures Blog

Lawyers must now draw on the data and drive change

Chris Marston 2014

The results from this year’s legal services consumer tracker survey make for interesting reading. In its sixth year, the research finds that a firm’s reputation continues to grow in importance, holding its top slot as the number one factor influencing choice of lawyer, with price remaining a strong second, reflected in a shift towards higher numbers of fixed-fee transactions. Alongside, it reports that trust in lawyers has declined to 42%, from 47% in 2012. It’s useful information as far as it goes, but what is the sector going to do with it?

September 26th, 2016