Management buys Veracity from bank

The move comes after Macquarie announced last November it did not see a long-term future within the group for Leeds-based Veracity, which provides services for independent financial advisers (IFAs), and its UK wrap platform.

Chief executive John Baxter, who led the undisclosed deal, said: "Servicing legacy investments and pensions is the achilles heel of the existing advice sector in that it often suffocates the capacity out of a practice in exchange for little or no ongoing revenue.

"Veracity helps advisers manage the potential conflicts of interests between what's best for the firm and what's best for their clients in tackling, what for most firms, will be their single biggest challenge ahead of the RDR (Retail Distribution Review)."

He added: "We have a compelling proposition, delivered by a highly motivated and experienced team at a very relevant time for the IFA sector. The completion of this buyout enables Veracity to continue to help businesses with their transformation journey, enabling them to be RDR ready and prepared for the new challenges ahead in the adviser market post 2012."

Veracity, which opened in October 2009, will continue to be led by Mr Baxter and chief operating officer Tim Crew.

It was set up to work with IFAs as regulatory changes, designed to make the system more transparent, mean they earn money from fees rather than commission.

The company, which currently has nine staff, provides a business transformation service for adviser firms to move from a commission-charging structure to fees.

Mr Baxter told the Yorkshire Post last year that several factors – an ageing population, increasing pressure on the welfare sector, the shift from final salary pension schemes to personal pensions and uncertainties in the future over tax and legislation – created a bigger market for its work.

john baxter: 'We have a compelling proposition, delivered by a highly motivated team.'