The Finance Sector Union (FSU) has urged any private equity (PE) deal for Insignia Financial should prioritise staff wellbeing paramount for its 4,000 employees, having spent 2024 negotiating an enterprise agreement.
Insignia is currently in discussions with two PE firms – Bain Capital and CC Capital – to acquire 100 per cent of the licensee, having both made a bid of $4.60 per share. In mid-January, it announced that it had granted access to select company information to both firms in the hope of them making a higher offer.
The FSU was in negotiations with Insignia for more than eight months last year on a new enterprise agreement which was finally reached in October 2024. Terms included a trial of a four-day working week, annual pay increases for those earning up to $130,000, and increases to superannuation.
However, with the PE deal on the line, the union is keen to ensure these rights are maintained for its employees. When a company is acquired by PE, there are typically risks for employees that they may lose their jobs, see changes in management or restructures of business divisions as the PE company seeks to embark on cost-cutting to increase its share price.
Insignia currently has around 4,000 employees across asset management, platform, financial advice and superannuation.
In a statement to Money Management, FSU national president Wendy Streets said: “FSU members have endured significant changes across Insignia Financial including the likely transition of more than 1,000 people from Insignia Financial to SS&C.
“The FSU expects that any discussions with Bain Capital and CC Capital would prioritise the welfare and job security of workers.
“Any potential change of ownership should include assurances for the safeguarding of the enterprise agreement and conditions.”
In December, it was announced that Insignia entered into an initial agreement with SS&C Technologies to simplify and transform its Master Trust business. If the deal proceeds, Insignia expects to subcontract a range of functions to SS&C while it will continue to provide servicing and administration, including claims and complaints.
Streets said the union will actively engage with Insignia over the potential changes and how it may impact members.
A spokesperson for Insignia declined to comment on the matter.
The full updated benefits of the latest enterprise agreement are:
- Guaranteed annual pay increases for those earning up to $130,000 TFR.
- Additional one-off $1,200 cost-of-living payment for all staff.
- Increases to superannuation.
- An industry first trial of a four-day work week.
- AI protections regarding decision-making processes and transparency around how AI is used.
- Increased parental leave to 16 weeks paid for either parent.
- Crystallisation of heritage severance pay entitlements.
- Increasing severance pay from 36 weeks to 52 weeks.
- Greater protections around working-from-home rights, including expanding exemption categories.
Earlier this year, Money Management covered the stress levels and mental health impact experienced by staff during an M&A process and how they can be mitigated by employers.
Max von Sabler, clinical psychologist at MVS Psychology Group in Melbourne, said: “M&A often triggers significant uncertainty and stress among staff. This uncertainty can lead to emotional responses like fear, frustration, or even disengagement, especially if employees feel undervalued or uninformed during the process.”
