One ofthe most talked about integration processes of recent times — the incorporation of bothBTand Sagitta Rothschild into the Westpac Bank fold — came one step closer to completion last week, with the combined group finalising the design of its all important distribution team.
The team, to be headed by BT’s Chris Freeman, will be split across five distinct distribution channels — corporate super, wrap, phone-based business development, independent financial advisers (IFAs) and the Westpac Bank’s branch-based adviser network, Financial Planning and Advice.
Each of the distribution channels will be supported by state-based sales forces, each headed by a separate state manager in New South Wales, Victoria, Queensland, Western Australia and South Australia.
The shape of the team was determined by a distribution integration task force formed shortly after Westpac’s acquisition of BT in August. The task force included three representatives from Sagitta Rothschild, four from BT and five from Westpac.
At the time of going to print, Sean West and Geoff Peck, both from BT, had been confirmed as the heads of the wrap and corporate super distribution channels respectively. Both positions were uncontested, with neither Westpac nor Sagitta Rothschild devoting significant distribution resources to either of the two areas.
The heads of the other three distribution channels, as well as the state-based sales managers, were scheduled to be announced late last week. However Freeman has confirmed all positions were hotly contested as applicants from BT, Westpac and Sagitta Rothschild vied for a limited number of roles in the upper echelons of the consolidated distribution team.
According to Freeman, there were five applicants alone to head up the IFA distribution channel.
“If you think about Rothschild and BT, they have high levels of duplication, and therefore you would expect a lot of competition for positions,” he says.
Already confirmed as a casualty is Chris Larsen, head of retail at Sagitta Rothschild. It is understood Larsen, who was one of Rothschild’s representatives on the distribution integration task force, chose not to apply for the top job with the combined group’s IFA distribution channel.
However, the process to finalise the combined distribution team is far from complete.
The heads of each of the distribution channels will now select the remainder of their state-based sales forces from a series of Westpac, BT, and Sagitta Rothschild candidates.
According to Freeman, all current employees in distribution roles at either Westpac, BT or Sagitta Rothschild have received letters telling them they are either confirmed in one of the roles with the new organisation, or they have to contest a role with other candidates, or that they have been made redundant.
In total, 120 positions are available within the new distribution team, although the group will not disclose how many existing employees will miss out.
“The most important thing is that there is going to be 120 positions. That is more than we had at BT, more than they had at Rothschild and more than they had at Westpac,” Freeman says.
It is expected those who do miss out will be given the opportunity to apply for positions in other areas within the combined business.
“We don’t think anyone will be displaced as a result of the integration unless they want to be,” Freeman says.
