Three investment firms are set to be bought by AJ Bell as it seeks to find “new solutions for financial advisers”.

The company has agreed to acquire a small London based investment management business – subject to FCA approval – comprising three firms in total.

AJ Bell said the business is divided into two distinct parts. Indexx Markets designs investment products, and its wholly owned subsidiary, Allium Capital, which operates an existing range of investment funds, the FP Allium DRP Funds.

The second is Mansard Capital, which is also FCA regulated and provides investment management services to, amongst others, the FP Allium Portfolio Funds.

An AJ Bell statement read: “The acquisition adds investment management services to our business, which gives us discretionary permissions as well as the ability to launch our own funds and build new investment solutions for financial advisers.

“Through this vertical integration we will be able to increase the value we deliver to financial advisers.

“We will work with financial advisers to build solutions they need to service their client’s needs.

“Although early days our initial intention is to offer a no-nonsense, low cost range of passive funds to the adviser market along with a model portfolio service based around passive funds.”