Tavistock Investments plc has struck a deal to sell its King Financial Planning arm for £3 million in cash and has also entered into an exclusivity agreement for the potential sale of Tavistock Group Holdings Limited, the owner of Tavistock Private Client Limited, to national Financial Planner Atomos.
Tavistock says the potential sale to Atomos is subject to definitive documentation and FCA approval.
It said the deal aligns with its strategic refocus away from wealth management services for higher net worth individuals, a segment now deemed "outside the group's core strategy."
The potential proceeds from the sale of Tavistock Group Holdings has not been disclosed.
The company says as part of a major group shake up it is also integrating Alpha Beta Partners, Lifetime Financial Management, and Plus Group to build a, "modern financial infrastructure" aimed at reducing the cost of advice for retail clients and advisory firms.
Tavistock has entered into an exclusivity agreement for the potential sale of Tavistock Group Holdings Limited, the owner of Tavistock Private Client Limited, with EPF V UK Wealth Bidco Jersey Limited (the Jersey-based holding company for the Atomos group).
Atomos has the exclusive right to exchange contracts for the acquisition on or before 14 November.
Tavistock, headed by CEO Brian Raven, has said previously said the moves were part of a "strategic refocus."
Earlier this year the firm said it wanted to be an 'industry disruptor' after completing its £6m acquisition of Lifetime Financial Management in a move it says will help roll out its AI and hybrid advice ambitions. Tavistock is planning to rebrand its whole business as Vertex, its fintech brand name, as its seeks to launch a hybrid advice model and target a wider audience.
It said today: "The failure of the financial services industry to support more than the privileged few is not because there are too few financial advisers, but because the way the industry operates, advice costs too much to deliver.
"Behind every piece of advice sits a great deal of work – gathering information, analysing a position, modelling options, writing a suitability report and compliance checking everything. This work sets an economic floor below which firms cannot serve clients at a profit. Tavistock is building a modern financial infrastructure that changes the economic parameters for retail clients and advisory firms.
Our refocus is being financed by disposals and achieved by like-minded firms joining the group. Alpha Beta Partners (ABP) is an asset manager with an excellent track record. Lifetime Financial Management and Plus Group are fintech firms that already work together to deliver integrated human-centric advice and support that makes appropriate use of AI to reduce costs and turbocharge productivity.
"As the cost of providing advice is reduced, the floor above which firms can profitably serve the people they currently have to turn away, also falls. Crucially, operating costs are not reduced by removing the adviser or lowering standards, but by removing the cost barrier that keeps advice out of reach."