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Grant Thornton sells advisory business to 1825

The wealth unit, which has £1.7bn of assets under advice, consists of 100 employees, including 34 financial planners, all of whom will be joining 1825.

The deal, which has been rumoured for a few weeks, is reportedly an attempt by Grant Thornton to distance itself from potential conflicts of interest, and to “streamline its focus”.

Dave Dunckley, the recently appointed CEO of Grant Thornton UK, said, “As we increase our focus on our strategy to provide high quality audit, tax and advisory services to our core markets, it is clear the wealth advisory team’s growth potential would be best delivered by a business focused solely on the financial advice market.

“The team’s clients will undoubtedly be better served through 1825’s approach and proposition, with the businesses sharing a natural alignment in values and goals, so it makes practical sense for the team to be in an environment in which it can flourish. We wish Neil [Messenger] and the team continued success into the future.”

In the wake of proposals from the Competition and Markets Authority (CMA), and from the Kingman review, the accountancy profession in the UK is under increasingly sharp scrutiny. Grant Thornton in particular has come in for criticism over its audit work on Patisserie Valerie.

Last week the firm announced a major overhaul of its audit arm. The changes include a new Audit Quality Board, a £7m investment in people and technology, an independent review of audit at the firm, and new centres of excellence in London and Birmingham.

The deal is expected to be completed in Q4, 2019 and the terms remain undisclosed.

Why do rugby players make such good business people?

Former New Zealand All Black Sean Fitzpatrick and ex-England rugby coach Sir Clive Woodward explain why rugby and business go so well together.

George Gregan, Australia’s talismanic former scrum half, is one of the country’s most successful rugby union players. His international career spanned 13 years and saw him win 139 caps. Only two people have represented their countries more in the history of rugby – New Zealand’s Richie McCaw and Ireland’s Brian O’Driscoll.

Yet just five years into his international career and at the peak of his powers – the same year, in fact, that Australia won the Rugby World Cup – Gregan started his own business: GG’s Espresso shop, based in Sydney’s bustling business district.

To a football fan this might sound like an odd move, a bit like David Beckham drawing up a business plan for a greasy spoon café. But there lies, in a nutshell, one of the major differences between a game in which you throw the ball and one in which you kick it.

Rugby union went professional in 1995, and although the amount of money pumped into the sport has steadily increased, players’ wages are still small compared to that of football.

All-Black Dan Carter will become rugby’s highest-paid player after the World Cup, yet even on his new wages it would take him more than 20 years to amass the annual salary of Cristiano Ronaldo. Ronaldo also enjoys bonuses and endorsements that take his earnings beyond £50 million a year – exactly 100 times more than the fourth highest-paid rugby player, Sam Burgess.

Rugby’s historical frugality is a major reason for its close and practical ties to business, says Sean Fitzpatrick, who recently spoke at Grant Thornton’s Inspiring Business event, part of a series dedicated to stimulating ideas among business audiences.