Lighthouse and Tavistock have put an end to their investment distribution deal in the wake of Quilter's successful takeover of Lighthouse.
The termination ‘with immediate effect' brings to an end a deal agreed seven months ago due to ‘the indefinite postponement of agreed marketing activities as a consequence of Quilter's takeover of Lighthouse'.
The two companies entered a deal last november under which Lighthouse was allowed to distribute some of Tavistock's investment products, through in-house investment arm, Luceo Asset Management, to its clients.
Lighthouse notes Tavistock’s announcement today and confirms that the strategic alliance with Tavistock has been terminated"
As part of the deal, Lighthouse also took a £1m stake in Tavistock.
Tavistock said it had terminated the alliance "due to the indefinite postponement of agreed marketing activities as a consequence of Quilter's takeover of Lighthouse."
Quilter purchased Lighthouse for £46.2m in April through its advice arm Instrinsic, with the takeover forecast to be completed in Q2. The acquisition will see 400 advisers join Quilter's advice arm Intrinsic, meaning Quilter will have 3,900 advisers - as many as St James's Place.
Quilter has its own investment range and discretionary management proposition, Quilter Cheviot.
Lighthouse issued a short statement on the Tavistock deal saying: "Lighthouse notes Tavistock's announcement today and confirms that the strategic alliance with Tavistock has been terminated."