Firms unveil investment business plan with membership of the Stock Exchange

IIMIA: solicitors to be offered equity in new company formed by leading south-west practices

Two leading south-west law firms have joined forces to launch an investment management business believed to be the first of its kind to have Stock Exchange membership.

Exeter firms Michelmores and Foot Anstey Sargent have hived off their investment services in the wake of the increased Financial Services Authority (FSA) regulation to form iimia - an investment business and licensed stockbroker.

Law firms which use iimia's services will be offered the chance to share fees or commissions, or take equity in the company, joining existing shareholders from Michelmores and Foot Anstey - non-executive directors who own 51% of shares on the holding company's board.

Andrew Maynard, a partner at Michelmores, said the two firms have been 'pals' for quite some time having both been 'the area's leading private client firms for ages'.

'Foot Anstey went independent with their investment services a year ago, but did not have the necessary funds, so we have provided 50% of the money to make it financially viable,' he said.

'We are taking this business seriously, we currently only have 55 million behind the company, but we hope to take it forward and create a national entity.'

They hope to have ten times that amount under management within three to five years.

Solicitor John Crowley, who set up Foot Anstey's investment department, is iimia's investment director.

Michael Phillips, an investment professional who is chief executive of iimia, said: 'We feel getting listed on the Stock Exchange acts as a bona fide third-party endorsement and attaches a good professional name to the business.

It also, obviously, gives those who are interested a chance to realise their commitment.'

Mr Maynard said the feedback they have got about 'offering solicitors a slice of the action' has been encouraging.

'Their eyes light up when we mention obtaining equity in the company,' he said.

'Compliance issues are huge [for law firms offering financial services], and must be dealt with properly.

Progressive firms are waking up to the fact that they need to make changes, and this is the way forward.'

Heather Martin, chief executive of the Association of Solicitor Investment Managers, said: 'This is an exciting development by two of our member firms.

'There is an encouraging trend of firms co-operating together in order to move forward for reasons of economies of scale, and that offers more choice to the public.'

Andrew Towler

LINKS: www.iimia.co.uk