E&Y withdraws From IFA business
Ernst & Young has exited the financial advice sector with the £3m sale of its IFA arm to Cavanagh group.
Ernst & Young Financial Management (EYFM) has suffered dwindling revenues and falling profits over the past few years along with the rest of the IFA sector.
The IFA arm, founded in the mid-eighties, has seen operating profit fall from 192,000 for the year to June 2001 to an operating loss of £180,000 for the year to June 2003.
E&Y said the sale was part of its strategy to concentrate on its core business.
All 121 staff will transfer to Cavanagh, also a high net worth IFA, in a reverse takeover that will give the combined company a head count of 206.
EYFM has 3,500 clients, including 500 current and former partners of Ernst & Young.