A number of Charles Stanley holdouts, who left the firm after failing to come to an agreement on remuneration, have set up their own company.
The business, called GPIM, has been established by Gino Palmeri, with Gareth Norton and Ian Jones appointed as investment managers. Palmeri owns over 75% of the company, according to Companies House filings.
Tina Josephides, who was a secretary at Charles Stanley for over 26 years, has also moved across with the team and is now serving as team secretary. The company has received authorisation as an appointed representative of Sapia Partners.
Back in May, Wealth Manager revealed that London-based investment managers Palmeri and Norton left Charles Stanley, alongside their three support staff.
Charles Stanley said that their departure ‘marked a line in the sand’ following drawn out pay negotiations which lasted two years, and were finally concluded in November 2016, barring a few hold outs.
Palmeri had worked at Charles Stanley for 20 years as a self-employed stockbroker, while Norton had been at the company for 21 years.
At the time of their departure a spokesperson said in a statement: ‘We can confirm that Gino Palmeri and his team, including three registered support staff, have left Charles Stanley following protracted discussions regarding remuneration arrangements.
‘Unfortunately, we were unable to reach agreement over the changes Charles Stanley has introduced on a consistent basis across the remainder of our private client investment management business. This, however, concludes our division’s longstanding reward discussions and marks a line in the sand from which we can continue to grow our private client business.’
Charles Stanley had been working to introduce new contracts since 2015. In the end, it agreed to two remuneration schemes for employed and self-employed staff. The revised contracts went into effect a year later than expected. Along the way, the negotiations resulted in a number of departures from the company.
The last team to agree to a deal was the firm’s 11-strong Manchester branch, which signed up to the move from revenue to profit-based pay in July.
It is currently unclear what services GPIM, based in London, will provide. However, Wealth Manager understands it will focus on private client wealth management. The trio did not respond to a request for comment.