Openwork approves financial restructuring terms
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Openwork has approved in principle the terms of a major financial restructuring that would allow it to execute its Retail Distribution Review strategy.
The network says the restructuring will also pave the way for its ambitious growth plans and secure greater value for all shareholders and advisers, while preparing the network and its advisers for the post-RDR operating environment.
It believes the proposals would set a platform for the continued growth of Openwork’s business, ensure it has significant funding in advance of the RDR’s 2013 implementation and provide and equitable formula to create significant value for its shareholders and advisers.
Furthermore, the plans would ensure Openwork has the resources to implement its proposition strategy, which would see the network offer its advisers the choice of operating a single-tie model, a multi-panel multi-tie model, or a whole of market IFA model.
The propositions will not affect the ownership structure of Openwork’s ordinary shares or the composition of the firm’s board and management.
Martin Davis, chief executive of Openwork, says: “This agreement in principle is an important milestone for Openwork’s partners and for our business as a whole.
“Not only does it demonstrate the alignment of principal shareholders, it also signifies the start of the next phase of Openwork’s growth as a business and gives it the platform to create significant value and income for partners and advisers.”
Richard Lubek, chairman of Openwork Partnership LLP, says: “For any network it is the advisers that create the value and this agreement in principle will ensure Openwork’s advisers benefit fully from the fruits of their labour.
“The fact that 95% of voting unit holders voted in favour of the agreement demonstrates the strength of the deal and I am extremely pleased that the LLP and Openwork’s management have been able to deliver such a good result for our advisers at this important time for the business and for the sector.”
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