Tavistock Investments Plc (LSE:TAVI) has agreed to sell the business and assets of King Financial Planning for £3 million and entered into an exclusivity arrangement with Atomos regarding the potential disposal of Tavistock Group Holdings, as part of a strategic shift towards technology-enabled financial advice services.
The proposed transaction involving Tavistock Group Holdings, which owns Tavistock Private Client, would involve the disposal of a wealth management business serving higher net worth individuals. Tavistock has granted Atomos a period of exclusivity to pursue the acquisition, although no completed sale has been announced.
The company said the disposals form part of its strategy to move away from certain traditional wealth management activities and concentrate on developing financial services infrastructure designed to reduce the cost of providing regulated retail financial advice.
Tavistock intends to use proceeds from business disposals to support this transition, with investment directed towards asset management capabilities and financial technology partnerships.
A central element of the strategy involves integrating artificial intelligence into financial advisory processes to reduce administrative workloads and operating costs. The company aims to combine technology-based systems with continued adviser involvement and compliance with regulatory requirements.
Tavistock is pursuing this approach through relationships with businesses including Alpha Beta Partners, Lifetime Financial Management and Plus Group. These companies operate across asset management and financial advice, incorporating technology intended to improve operational efficiency.
Management’s stated objective is to establish an advisory model that reduces the cost of delivering financial advice, potentially allowing services to be offered to a broader range of retail clients.
The agreed £3 million disposal of King Financial Planning and the potential sale of Tavistock Group Holdings represent separate transactions. Completion of the latter remains subject to further discussions with Atomos.
Tavistock continues to reposition its operations around asset management and technology-supported financial advice as it progresses its disposal programme.
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