The deal, which is subject to FSA approval, will see CAERUS assume full control of the PFA business.
Paul Hogarth said: “The PFA network has been an important and successful part of the Paradigm Group for a number of years. However, over the last six months it has become clear to the team and I that the network would be better served by a business whose future is more closely aligned with this area of the market.
“In CAERUS, we have found such a business which has firms already operating within the PFA network. CAERUS not only has the people and processes in place to take on PFA but the leadership that has the vision, skill and experience to ensure the combined proposition becomes a major force in the network space.”
CAERUS Founder Keith Carby added: “When we struck an agreement with PFA in 2010, we made it clear that we would be seeking regulatory permissions after three years.
“Our desire to develop a distinctive, high quality customer experience meant this was essential. Paradigm’s strategic decision gives us the opportunity to make this move a few months earlier than planned.
“CAERUS would not have flourished without the support of the Paradigm leadership in our early days.
“We will always be grateful for that support. This acquisition marks the move into a new phase of development of the CAERUS Capital Group and will further increase our chances of making CAERUS the UK’s most consumer-centric proposition for high quality financial advisory firms.”
The decision reflects a desire by Paradigm’s senior management to concentrate on supporting the Group’s directly authorised proposition, Paradigm Partners, as well as its other growing interests. These include Paradigm Pensions, Paradigm Mortgages, recently-launched corporate wrap platform Amber, and Tatton, the Group’s new investment management business.
