A firm of financial advisers which fell foul of the island’s financial watchdog has had its business snapped up by another company.

Athol Street based MAC Financial Ltd says it has acquired the clients of Island Financial Solutions Limited (IFS), of nearby Prospect Hill.

All IFS employees have been offered the opportunity of contracts with MAC Financial with the exception of IFS co-founders and directors.

And it has been confirmed that three IFS staff have agreed to take up the offer of joining MAC.

MAC Financial, one of the island’s largest independent financial advisory firms, operates under the MAC Group umbrella.

Financial watchdog body the Isle of Man Financial Services Authority recently fined IFS a civil penalty of £89,994 after having an ineffective compliance regime and misusing its own group pension scheme.

The fine was discounted by 30% to £62,996, reflecting the fact that the company co-operated with the authority and agreed settlement at an early stage.

The FSA identified a number of regulatory failings in relation to the company’s financial advice to its customers, following an inspection in 2018.

The FSA has confirmed the acquisition can go ahead and it is expected to be completed by November 1.

Jon McGowan, MAC Group chief executive, confirmed they were ’fully aware of the long running investigation’ by the FSA when ’they progressed the deal’.

Talking about the acquistion Mr McGowan told Business News: ’MAC is constantly looking at strategic opportunities to grow our successful financial services business.

’IFS has built up a significant number of long-estab--lished clients who have similar needs to our own and we look forward to welcoming them, along with our new colleagues, into the MAC family.’

An IFS director, who asked not to be named, said: ’We are pleased we have found a company such as MAC Financial who can fully support our clients and employees going forward.

’In these uncertain times, we came to the conclusion that a much larger group, with a higher number of specialist financial advisers and support staff, would provide our clients with an excellent and consistent quality of service, together with the peace of mind that their financial planning needs are in good hands.

’We have worked closely with the team at MAC to ensure there is a smooth transition for our clients and employees.’

Meanwhile Mr McGowan said that negotiating the acquisition in the current difficult circumstances was an achievement and a credit to the MAC team, and formed part of a planned growth strategy.

He said: ’We have a number of discussions under way regarding further acquisitions and would always like to hear from both IFAs (independent financial advisers) and general insurance brokers who may wish to retire or exit the industry.

’We can offer an attractive package to work with business owners to unlock the value they have built up in their companies.’