The financial planning practice of high profile adviser Dominic Alafaci has struck a joint venture deal with Ipac Securities, creating a new offshoot, Collins House Financial Planning Solutions, which Ipac could take control of over a three to 10 year period.
Alafaci’s Melbourne-based Collins House advice business will retain its relationship with private clients of the firm, while clients wanting to delegate the management of their investments to a professional manager will transfer to the new subsidiary, Alafaci told Money Management.
“Our private clients who take more control of their investments will stay with the Collins House Group, as will our legal and accounting businesses,” the winner of Money Management’s Financial Planner of the Year 2000 said.
“The advisers working for Solutions will still be licensed by Collins House, but they will be using the Ipac platform.”
At present, Collins House uses IOOF, Fiducian and ING platforms, and Alafaci confirmed these would be phased out with clients’ approval.
Meanwhile, Ipac chief executive Peeyush Gupta said the alliance added another business to the growing AXA-owned dealer group.
“For Ipac, [such] deals enable us to grow our business over time through alliances with quality practices in strategic locations,” Gupta said.
Alafaci said the search for a new business partner began two years ago with a casual conversation with Gupta.
“We had a few suitors and in the end talked to five serious players in the financial services industry, [and] in the end the best fit was with Ipac for the clients and the staff.
“The deal with Ipac will allow it to take control of Solutions over a three to 10 year period, which is good news for the staff, as they now have a defined career path,” Alafaci said.
Collins House employs five authorised representatives and manages about $120 million for clients.
Alafaci is the majority shareholder in the Collins House Group, which he originally set up with Melbourne stockbroker E. L. & C. Baillieu.
