Top 5 moves: 2010
The replacement of outgoing Financial Planning Association CEO Jo-Anne Bloch by Godfrey Pembroke chief Mark Rantall attracted criticism from some quarters of the industry.
1. Jo-Anne Bloch
When Jo-Anne Bloch announced in early February that she would be leaving her post as Financial Planning Association (FPA) chief executive after four years in the role — a tenure that included overseeing one of the most tumultuous periods in Australian financial services — it took three months to narrow the field down to a suitable replacement.
The selection of former Godfrey Pembroke chief Mark Rantall drew criticism from some people in industry, who pointed to his institutional background as further evidence the FPA was divided in its loyalties between independent planners and institutional backers.
Since taking over the role in May, Rantall has had to deflect criticism of the association’s ownership of the Certified Financial Planner designation and continue to guide members through the debate about professional standards.
Rantall recently responded to criticism around the association by announcing a lifting in education standards for new FPA members and the restriction of voting rights to planner members.
2. van Eyk Research
To say that it has been a tumultuous year for van Eyk Research would be an understatement.
The ructions started in August 2009 when founder and managing director Stephen van Eyk was ousted at an extraordinary general meeting, with long-time company executive Mark Thomas made chief executive.
Stephen van Eyk remained a major shareholder, but his 25 per cent stake was purchased by New Zealand’s Pyne Gould Corporation in June — severing Stephen van Eyk’s formal ties with the company that still bears his name.
Van Eyk Research lost long-term researcher and freshly appointed head of research Nigel Douglas to Perpetual in March, and general counsel and company secretary Anna Smith left to join Count Financial in July.
More recently the company made staff cuts across its research, product, IT and sales teams, which Thomas said were unrelated to the recent loss of the Count Financial and Westpac accounts.
3. BT and Perpetual Private Wealth
It was a year of musical chairs for Australian dealer groups, with BT and Perpetual Private Wealth both at the centre of some high-profile moves.
Ipac kicked the year off with a restructure as Sally Manion announced in January she would be leaving her role as head of financial planning after ipac’s head of business partnering John Saint left last year.
Libby Roy took up the combined role under the banner of general manager, financial planning, in March.
BTFG’s general manager for advice and planning Geoff Lloyd left the group for Perpetual in April, then in June Perpetual’s chief executive David Deverall announced his departure — although he remains in the job for now and no replacement has yet been named.
His resignation also meant the Financial Services Council had to appoint a new chairman in October, with Macquarie’s Peter Maher getting the nod.
Neil Younger left his role as BT’s head of dealer groups and licensee select at Securitor in September to succeed David Mackay as general manager of Commonwealth Financial Planning, while BT’s head of practice management, Matt Englund, stepped into Younger’s role.
4. 452 Capital
The most serious and dramatic manager movements seen in 2010 occurred at boutique 452 Capital. The problems began with health concerns for founder Peter Morgan in the middle of last year.
But the problems for the business took place in August this year. Co-investment heads Suellen Morgan and Mary Feros and chief executive Lyndsey Hancock took the industry by surprise when they notified the 452 Capital board of their intention to leave the group. Shortly after the announcement, equities analyst Nathan Parkin also left 452 to join Perpetual Investments.
The departures prompted a ‘sell’ rating from Standard and Poor’s (S&P) and funds started flowing out of 452, with 452’s biggest client Colonial First State the biggest evacuee, withdrawing about $1 billion and replacing it as manager.
Less dramatic but on a larger scale, BlackRock experienced major upheaval following the mid-2009 merger with Barclays Global Investors, with the scientific equities funds particularly affected.
The first to go was long-serving managing director of BlackRock in Australia, Maurice O’Shannessy, who stepped down late last year once the merger was completed.
Global chief investment officer of scientific active equities and head of the Australia SAE business Morry Waked announced his retirement in February after 12 years with the company.
Another 12-year man, head of BlackRock in Australia Will Britten, also announced he was leaving the group in February, making way for long-term BlackRock executive Damien Frawley.
In May S&P placed seven BlackRock funds ‘on hold’ following the departures of two team heads, Australian head of scientific active equity investments, Andrew Jackson, and head of portfolio management active equity Davis Walsh.
Two portfolio managers had to be flown in from the San Francisco office to plug the gap. Around the same time the indexation team also lost portfolio managers Glen Harris and Nick Burt.
5. Tower Australia
The most active insurance company in terms of staff movements was Tower Australia, which had a particularly acquisitive year.
In January the company boosted its group insurance presence with the appointment of Paul Rohan from IOOF to head Tower’s AustralianSuper Insurance Account.
Niall McConville was poached from competitors AIA to bring his specialist industry knowledge to the role of national dealership manager.
Tower then headhunted Aviva executive Craig Parker to work as state sales manager in Victoria, the same role he had held at Aviva, shortly after announcing Aviva’s Brett Smith would join Tower as Victoria and Tasmania state underwriting manager.
In August, Tower added Jason Scott as national fulfilment manager for retail life and Helen Molloy as chief underwriter for retail life.
