Yes. It is fully-funded and operational.
The succession solution has been developed over 18 months specifically to support IFAs. ValidPath has been committed to independent financial advice and supporting independent financial advisers for over 20 years. ValidPath is part of the Rimbal group that operates multiple FCA authorisations, a captive insurance company, technology development and an internal financing vehicle. Our internal structure and capabilities in combination with a having a client and IFA-centric approach has led to the ValidPath succession solution.
The succession solution is available to current and future Members (i.e. Appointed Representatives) of ValidPath. You may currently be an Appointed Representative, Directly-Authorised or indeed working as an financial adviser for a regulated entity, we can accommodate all these scenarios.
Yes. Due to how the solution operates, it will be a requirement to join the ValidPath IFA Network and transition to become an Appointed Representative. This has additional benefits for you and your team such as utilising the ValidPath infrastructure, services and back-office support so you can focus on servicing clients.
Yes. Due to how the solution operates, it will be a requirement to transition to the ValidPath IFA as an Appointed Representative. This has additional benefits in being able to use the ValidPath infrastructure, services and back-office support so you can focus on servicing clients.
Yes. There is a requirement to commit to the business through a services agreement and potentially to make an income “sacrifice” contribution over the term.
Yes. ValidPath is part of the Rimbal group. Rimbal is supported by one of the largest single-family offices in the US and Europe that invests in financial services firms globally and with investments that include Credit One Bank, Bamboo Loans, JaJa Finance and Zopa Bank. Rimbal is capitalised to fund the ValidPath Succession Solution.
No. If you don’t have a suitable internal or external candidate to take over the business, we can introduce you to one of our Members who are looking to grow their business.
A Successor Manager can be one or more IFAs within the firm, a local IFA known to the firm or a current Member of ValidPath that is looking to grow their business.
Yes. The Successor Managers will be directors of the regulated business and be responsible for the day-to-day running of the business and delivery of the business plan.
The Successor Managers(s) commit to run the business and deliver the business plan in return for an equity share in the business paid from the retained profits of the business over the 36 month period. The Successor Manager have the option to acquire 100% of the business at month 36.
The payment profile will vary to reflect the deal structure and the requirements of the retiring Principal, however, will typically see up to 80% of the total consideration paid within 12 months with the final payment of 20% being made at 36 months.
Yes. We can facilitate an agreed retirement timeframe that takes into account the objectives of the seller, Successor Manager and transition plan of the business typically within 6 to 36 months.
No. We are committed to preserving independence and supporting independent financial advice. Firms and advisers can continue to support their clients their way and in their best interest with minimal disruption or distraction.