Tilley confirmed to Financial Planning Today that discussions were ongoing to combine with Smith & Williamson and create a group with £45bn in assets.
A spokeswoman for Tiley said: “A merger of Tilney and Smith & Williamson would create a market-leading, integrated UK wealth management and professional services group with over £45 billion of assets under management.
“These discussions are ongoing and there can be no certainty that a transaction will proceed.
“A further announcement will be made as and when appropriate.”
A spokesman for Smith & Williamson said: “Further to the announcement by AGF Management Ltd to the Toronto Stock Exchange yesterday (18 August) regarding its shareholding in Smith & Williamson, the board of Smith & Williamson confirms that it has received an approach and is in exclusive discussions about a combination of its business with Tilney Group.
“The respective Boards believe that a merger of Smith & Williamson and Tilney has the potential to deliver significant benefits to the clients, employees, partners and shareholders of both businesses and create a market-leading, integrated, UK wealth management and professional services firm.
“Discussions remain ongoing and at this stage there is no certainty that a transaction will proceed.
“A further announcement will be made in due course.”
It is believed a combined group would have around 250 Financial Planners and around 240 investment managers.
The firms also held previous discussions two years ago over a potential merger.
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