The £44bn merger between London-based Tilney and Smith & Williamson is set to complete on 1 September, having previously been delayed by the covid-19 pandemic and intervention from the Financial Conduct Authority (FCA).
Earlier this year, disruption caused by the coronavirus pandemic held up the merger, while the regulator identified "a number of issues" with the previous terms of the deal.
In September 2019 the firms confirmed the merger, which is set to create a £44bn AuM business under the name Tilney Smith & Williamson with chief executive of Tilney Chris Woodhouse set to become group chief executive.
Amid the disruption, private equity firm Warburg Pincus entered the fray to co-invest in the business alongside existing investor Permira, as part of a revised transaction structure.
Now, in a S&W client communication seen by Investment Week (a sister title to International Investment), it has been confirmed that the merger will go ahead on 1 September.
The letter confirmed that the merger had received "overwhelming support of Smith & Williamson shareholders and achieved all the necessary regulatory approvals" earlier in August.
It added that the merger is expected to create the "UK's leading integrated wealth management and professional services group", with total projected pro forma revenues of approximately £530m.
The letter said: "Although the combined group will be known as ‘Tilney Smith & Williamson', we will continue to trade as Smith & Williamson as normal.
"Please be assured you can expect to receive the same high levels of client service to which you are accustomed while our fee structure and charges will remain unchanged."
In addition, the letter confirmed changes to S&W's client platform.
Client portfolio valuations have now been "enhanced" to include sections for a managed portfolio and a non-managed portfolio, should multiple investment services be provided.
In addition, separate cash statements will no longer be issued, with information to be included in portfolio valuations.
From 1 October, client fees will be calculated using the average daily closing value of the portfolio in the quarter and the annual rate prorated for the number of days in the period. At present, fees are calculated using the portfolio value as at the fee date and the annual rate prorated for the number of days in the period.
Tilney and Smith & Williamson have been contacted for comment.
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by Tanya at http://www.ifajobs.net
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