AFS strategic stake finalised
Peter Daly
The Australian Financial Services (AFS) Group, ranked 21 in the 2007 Money Management Top 100 Trends Survey, has completed its transaction to acquire a strategic stake in the financial planning operation The Salisbury Group (TSG), ranked 62 in the same survey.
The heads of agreement for the deal was signed back in April of this year and will elevate the combined group’s funds under advice to just over $6 billion.
TSG chairman Professor Tom Valentine said: “Each dealer group continues to operate separately under their own brand, but benefit greatly from the synergies generated by the merger.”
Both dealer groups will benefit immediately from being able to offer a more extensive approved product list to its clients.
The move will also see a consolidation of the compliance function under the control of AFS, as TSG had previously outsourced their compliance procedures.
In addition, the services of research house Lonsec have been introduced to both financial planning operations.
It is expected that further economies of scale will result for both groups as a direct consequence of the transaction.
The completion of the purchase coincided with the news for TSG that it is on the verge of signing its first practice for the new financial year.
“Furthermore, the unique position of AFS and TSG provides an exceptional value proposition for advisers and practice managers seeking a dynamic dealer group that is committed to quality independent advice and adviser growth and business success,” AFS chief executive Peter Daly said.
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
