REG - Tavistock Investment - Tavistock and Novia Announce Strategic Initiative <Origin Href="QuoteRef">TAVI.L</Origin>

Tavistock InvestmentsAnnouncement

29/10/2014 07:02

RNS Number : 4245Q
Tavistock Investments PLC
01 September 2014
1 September 2014
Tavistock Investments plc
("Tavistock" or the "Company")
TAVISTOCK AND NOVIA ANNOUNCE STRATEGIC INITIATIVE 
Tavistock Investments Plc ("Tavistock") and Novia Financial plc ("Novia") are delighted to announce that they have entered into a strategic commercial relationship.
Novia is an established wrap platform operator with existing relationships with a high number of IFA firms. Tavistock Partners, Tavistock's advisory subsidiary, has a long-standing relationship with Novia and a significant proportion of its clients' assets are currently managed on the Novia platform. Tavistock Partners has also developed an attractive and guaranteed retirement package for its IFAs.
Tavistock Wealth, Tavistock's DFM subsidiary, has created an innovative and low cost centralised investment proposition ("CIP") for Tavistock Partners' clients and is now seeking to offer this service to a wider audience.
Under the terms of the strategic agreement, Tavistock Wealth has endorsed Novia as a preferred platform and Novia will introduce advisers to Tavistock on a selective basis. Tavistock Wealth will grant Novia supporting IFAs access to its CIP, otherwise only available to advisers that have joined the Tavistock Partnership. Additionally, Tavistock Partners has agreed to make its "retirement guarantee" available to any such firm at a time of their choosing.
As part of the arrangements, Novia and Cocoon Investment Holdings Limited (which is a substantial investor in Novia) have participated in Tavistock's share placing and are providing a three year, unsecured, convertible loan facility. These arrangements are the subject of a separate announcement today.
Novia's Chief Executive, Bill Vasilieff, commented: "The trend for the consolidation of IFA firms has accelerated post RDR. We like the Tavistock proposition for advisers and anticipate making an excellent return from our stake in the business. The deal adds real value to Novia supporting advisers by obtaining a very attractive retirement option for them, one with preferential terms to those otherwise available. However, the end client will be the real beneficiary, protected from a potential advice gap, by assured continuity of advice in the event that their adviser retires from the market."
Brian Raven, Tavistock's Chief Executive, added: "Novia is one of our platforms of choice because it offers market leading functionality that fits well with our processes. Novia has also demonstrated a willingness to work with us for the benefit of our retail clients. We anticipate introducing substantial assets onto the Novia platform as our business expands."
For further information:
Tavistock Investments plc

Oliver Cooke, Chairman
Brian Raven, Chief Executive
Tel: 01753 867 000


Northland Capital Partners Limited
William Vandyk / Matthew Johnson
Tel: 020 7382 1100



This information is provided by RNS
The company news service from the London Stock Exchange
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