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December 13, 2021

Raymond James’s acquisition of Charles Stanley stalled over FCA approval

By Verdict Staff

Raymond James’s acquisition of British wealth manager Charles Stanley has been pushed to January 2022 because of a delay in approval by the UK’s Financial Conduct Authority (FCA).

The £278.9m acquisition was expected to conclude this month.

As part of the deal, the two companies had scheduled a sanction hearing next week anticipating the deal would receive the regulatory nod from the FCA by then.

However, as per the latest from Charles Stanley, the companies have agreed to postpone the transaction as companies are not sure of receiving approval well in advance that would have allowed them to file the necessary court documentation.

The companies have secured an alternative Sanction Hearing date on 19 January 2022.

The deal is now is expected to become effective on 21 January 2022, subject to FCA approval.

Deal details

First announced in July this year, the deal entails the purchase of the entire issued share capital of Charles Stanley for £5.15 per share.

Raymond James is executing the acquisition through its subsidiary Raymond James UK Wealth Management.

Said to the oldest companies trading on the London Stock Exchange, Charles Stanley will add 200 wealth managers and approximately £27.1bn in client assets to Raymond James.

Additionally, Charles Stanley’s multiple affiliation options are expected to help the firm offer wealth managers affiliation choices in the UK in line with its model in Canada and the US.

Following the close, Charles Stanley is likely to remain as a separately branded firm, doing business as Charles Stanley, a division of Raymond James.

Last December, Raymond James signed a deal to buy boutique firm Financo to accelerate its expansion plans in response to the increased demand for investment banking expertise.

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