Firms' hive of activity

The trend of solicitors hiving off their financial services practices has gathered pace in the run-up to the Financial Services Association (FSA) becoming sole regulator of investment activity this weekend.Cambridge firm Hewitson Becke & Shaw has joined forces with Ipswich-based Birketts to form Affinity Investment Management, while Kettering firm Toller Hales & Collcutt has joined three chartered accountancy firms in launching Solace Associates.'One of the main reasons for the move is that the regulations state that a suitable person must be in a position to oversee and supervise financial activity,' said Andrew Lowin, Affinity chief executive and former head of Hewitson Becke & Shaw's investment department.

'If we remained as part of the firm, this responsibility would fall on the managing partners and, considering they are not investment managers, they are concerned about this.'Mr Lowin said the new company, though a joint venture made up of 16 staff from Hewitsons and four from Birketts, would retain its current offices in each firm's headquarters.Barry Rogers, Solace managing director and partner at Toller Hales & Collcutt, said: 'Increasing regulation and the cost of running a financial services operation are making it increasingly difficult for small players to survive in a competitive market place.

As an in-house department we didn't have the critical mass to cope and we have addressed this.'

Andrew Towler