Co-operative in 'advanced discussions' to sell IFA arm

Co-operative Financial Services (CFS) says it is in 'advanced discussions' with a buyer for its IFA business.

The company says the sale of its adviser arm is part of a new strategy being implemented following its merger with Britannia in August 2009.

"We are exploring a number of strategic options for our independent financial adviser arm - Co-operative Independent Financial Advisers (CIFA)," says the company.

"Our preferred option is the potential sale of the business and we are in advanced discussions on an exclusive basis with a third party."

A CFS spokesman said the integration process with Britannia should be complete in two years.

CFS has 12,000 staff, with its CIFA adviser arm employing 106 workers of which approximately half are advisers. The majority are commission based.

The firm says it will seek to minimise the impact on staff of any sale of its IFA arm.

"We will also continue to consult with colleagues and our trade unions on any proposed changes," it adds.