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Publicly-listed financial services house MMC Contrarian has declared its intention to move further into the financial planning space on the back of its recent acquisition of ComCorp.
At the same time as reinforcing the MMC Contrarian board’s continuing opposition to a takeover bid by the Guinness Peat Group, the company’s chairman, Ray Kellerman, said MMC Contrarian was poised to capitalise on financial planning acquisition activities and “acquisitions within the broader wealth management industry”.
Referring to MMC Contrarian’s acquisition of ComCorp in April this year, Kellerman said it represented a platform upon which to develop a very strong presence at the coalface of the financial services industry — financial planning.
“While the financial planning industry faces regulatory challenges, your company’s board and management are well placed to face such challenges, and indeed position MMC to capture the opportunities that are presented by an industry moving towards a fee for service revenue model,” he said.
MMC Contrarian managing director Alexander Hutchison said he believes the opportunities in financial planning were not limited to probable regulatory changes but would also be driven by the continuing growth of the Australian superannuation sector.
“These compulsory contributions coupled with economic growth and Australia’s ageing population means that the fundamentals for an environment in which the demand for financial advice will grow is essentially baked in the cake,” he said.
