Associated Planners signs credit union deal

Associated Planners (AP) has signed a joint venture deal with South Australian credit union Power State Financial Services (PSFS) to offer a range of financial services investments, including superannuation and financial planning.

Associated Planners general manager Andrew Creaser says the joint venture deal is between Power State, Associated Planners and an AP founding member firm, Ray Clark & David Brooks.

Under the terms of the deal, the South Australian based Ray Clark & David Brooks will own a 25 per cent stake in PSFS, while Associated Planners would own 24 per cent stake, for a total of 49 per cent.

Power State Financial Services, formerly Electricity Trust has 39,000 members, with $190 million in assets across its six branches across the state.

“The financial service arm of the group has been dormant in the past, and we really wanted to wrap it up with the addition, for its credit customers, of investments, superannuation and financial planning,” Creaser says.

The structure of the deal, Creaser says, will allow the credit union to tap into Associated Planners infrastructure, while PSFS will continue to operate under the same licence and brand.

“Credit unions have been successful in South Australia, and those credit unions who have done financial planning have done well,” he says.

Creaser says the move in the longer term might also be beneficial for Associated Planner members in South Australia, with the credit unions producing banking type services that might appeal to them.

At present, Creaser says recruiting new advisers is the top priority, with only one senior planner required initially. Five qualified advisers within the Ray Clark & David Brooks business are on hand if needed.

Another deal is in the pipeline for the Associated Planners, as the group is in due diligence with a Queensland based group. Creaser could not comment on further details.