Viridian, the company which has acquired the Westpac and BT financial advice businesses, is seeking to lure advisers from the aligned Securitor and Magnitude dealer groups with “the opportunity to keep the BTGL community together in an increasingly fractured industry”.
However, it also declared it would be seeking a new Australian Financial Services License (AFSL) to leave legacy issues behind and that the new licensee would be independently led and have an arms-length relationship with Viridian Financial Group.
Money Management was provided a copy of a document being used by Viridian as part of its approach to Securitor and Magnitude advisers which revealed a company which was offering participation in an ownership structure without any of the legacy issues attaching to the old licensees.
It stated that Viridian would apply for a new AFSL and that firms joining the new license would not be subject to “the same legacy current AFSLs have”.
“Firms joining the AFSL have a chance to help shape its future in a design and community sense,” the Viridian document said. “Staff joining the AFSL have a chance to look forward and engage in a future not bogged down by the past built in a post-Royal Commission world with systems and processes designed to support a post RC advice process.”
The document also promised a smooth transition from BT to the new licensee with payments continuing “as per current arrangements with BT”.
The document also suggested the new licensee would be highly selective and would initially be limited to the BTGL network with rigorous review processes being applied to any recruitment outside of the BTGL network.
Where fees were concerned, the Viridian document outlined a practice fee of $48,000 a year with $22,000 a year for the first two authorised representatives (ARs) and then $15,000 a year for each subsequent AR.