Adviser cut unclear as IOOF buys AM Corp
IOOFhas been confirmed as the new owner of superannuation and investment specialistAM Corporation.
However the founder and previous owner of AM Corp, David Smith, would not be drawn on the particulars of the deal, including the sale price and the cut advisers would receive from those proceeds.
Late last year, AM Corp stated that independent financial planners would share in the proceeds of the sale.
At the time, it was understood that the amount individual advisers would get from the sale would depend on the level of business they wrote for AM over the past year, as well as the period of time they have been associated with the group.
Smith says the portion of the sale proceeds to be allocated to individual financial planners is still to be determined, although he says the requirement that they share in the proceeds has been written into the sale agreement.
“We just need to set up the right structure,” Smith says.
In an interview withMoney Managementtoday, Smith said that AM chose to sell to IOOF for a number of reasons, including the group’s culture, client focus and current market position.
“IOOF are a good fit, their culture is very similar to AM’s. I knew that the [AM] staff would be comfortable. IOOF has a strong client focus, and I knew that they would be really caring for the clients, as well as the fact that they are an up and coming company,” Smith says.
Smith says he is hopeful all aspects of the deal with IOOF will be completed within the next month.
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