Smith & Williamson creates LLPs to drive partner investment
LLPs' tax efficiency should encourage Smith & Williamson partners to buy into the firm
SMITH & WILLIAMSON has revamped its corporate structure to encourage younger partners to invest in the business.
The firm has created two LLPs to sit at the base of its corporate structure. Tax and services are within one LLP, while investment management and banking will sit in the other.
Smith & Williamson chairman Gareth Pearce told Accountancy Age that the structures were more tax-efficient for its partners than awarding shares, and the move should encourage “up-and-coming” partners to take a “meaningful stake” in the business.
There are no concerns for succession planning at the firm, he added.
The launch of the investment management and banking LLP is awaiting FSA approval.