AM Corp confirms advisers will get sale split
Adviserswho recommendedAM Corporationproducts will still receive a one-off payment afterIOOFconfirmed it was in talks with AM Corp management regarding the pay-out.
The confirmation comes with news leaking out that IOOF paid between $20 to $31 million for AM Corp, well down from the $100 million expected when the sale was first announced, which had in turn cast doubts on the adviser pay out.
The price paid by IOOF is dependant on the fund retention on completion of the sale, which is due at the end of this month, with IOOF likely to pay a figure close to $31 million.
IOOF managing director Rob Turner confirmed his company was talking to AM’s management team and the advisers who were involved in its loyalty program.
“There is a provision for a loyalty program and IOOF is aware of its commitments. We have spoken to some long-serving advisers and we are working on the eligibility terms for a payment,” Turner says.
According to Turner, his company has been told of the adviser expectations but says he is not releasing any details at this stage of the discussions except to confirm the pay-outs are likely to go ahead.
The actual sale price for AM has not been released as IOOF is restricted from releasing the figure, saying it is protected by a confidentiality clause.
“We cannot say what the purchase price is, however, it will be released in our annual report which will come out later this year,” Turner says.
Yet Turner has revealed the AM Corporation name will not continue to be used and that a number of senior executives would leave the group. None of the AM board will be invited to join IOOF as the two companies are integrated.
After completion of the AM deal, Turner says it will be a boost for the company when it lists.
He would not say when the listing will occur, other than before the end of the year, but admits current market conditions are not favourable.
“We don’t need to raise any capital so we will list when it is the right time for the shareholders,” he says.
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