Saffron Building Society confirms IFA arm sale to Towergate

East Anglia-based Saffron Building Society has transferred its financial planning subsidiary, Saffron Independent Financial Advisers to Towergate Financial.

The decision followed a Board-level review at Saffron on the future for financial advice and, in particular, the forthcoming Retail Distribution Review (RDR).

Three financial advisers and a paraplanner are moving across to Towergate, however, Saffron's mortgage sales will continue as normal with 70% of Saffron's advised mortgage sales delivered by external advisers.

Saffron IFAs have delivered full IFA services to Saffron's members including investment options, retirement planning and taxation issues.

Saffron Building Society, chief executive, Jon Hall said: "Saffron's objective was to guarantee the provision of this valuable financial advice service in light of regulatory uncertainty. Engaging with Towergate Financial achieves this objective as well as retaining our existing advisors. It's a credit to the team involved in Saffron IFA that there was such interest in this business reflecting the highest standards in handling our clients."

He added he is glad Towergate's stewardship will provide continuity of quality financial advice to Saffron's customers and he is confident Saffron's advisers will also be well-supported through the upcoming regulatory changes.

Saffron BS took the prize for ‘Best Specialist Lender' in the annual Mortgage Advice Bureau awards.