Lighthouse lined up for Park Row IFAs if 2plan talks crumble

IFA Lighthouse is in the driving seat to snap up more than 200 Park Row advisers should talks for a bulk transfer to 2plan Wealth Management break down.

IFAonline understands the Aim-listed company was second only to 2plan during initial discussions with Park Row's parent company Royal Liver, which is seeking to offload the loss-making business.

The FSA is in the process of assessing the merits of a bulk transfer of up to 242 advisers from Park Row to 2plan Wealth Management in a deal worth a possible £1m. Initial discussions with the regulator were described as "very positive" but a decision is not expected for at least another week.

If agreed, 2plan will pay up to £5,000 per Park Row adviser but the amounts will depend on each adviser's earnings potential and figures will be agreed between the companies.

Park Row was impressed by 2plan's business strategy and the two companies are both based in Leeds, meaning many of Park Row's advisers can simply switch to nearby premises.

A 'bulk' transfer is the preferred option for all parties, as it involves the FSA simply switching advisers' authorisation details on its records.

At least 12 firms, including Positive Solutions, Tenet and Sesame also approached Royal Liver about Park Row's advisers but their bids were unsuccessful.

Earlier this month, Royal Liver announced it was "considering carefully" the future of its investment in Park Row after the IFA posted a bigger-than-expected £2.17m loss for the first six months of the year.

The company, which acquired Park Row in 2003, says it wants to focus on its manufacturing propositions, progress and Caledonian Life.