The merger between high-end financial planning groups Centrestone Wealth Management and the Berkley Group, initiated in April 2005 to maintain their independence, has culminated in the launch of a new advisory firm, Centric Wealth.
Berkley advisers who have merged with Centrestone to form Centric Wealth should have little trouble adapting to the new dealer group’s remuneration structure, according to joint chief executive Michael Pillemer.
“At Centrestone we always clearly stated that we were predominately fee-for-service. And to my best understanding the situation was similar at Berkley,” said Pillemer, who is the former joint head of Centrestone.
He added that apart from some small exceptions surrounding rebates from cash management trusts and commissions gained from its smaller risk and lending divisions, Centric would remain predominately fee-for-service.
As for the cost of joining Centric, Pillemer said adviser service fees would be calculated on a percentage of revenue raised for the group.
He said Berkley advisers, who as part of the deal had their practices acquired by Centric, may find their final take of profits less than it was under Berkley’s old dealer split model. But he added that increased resources and adviser services would compensate the lower final take.
Centric Wealth was launched on October 17. It has 38 authorised representatives, 30 of them financial planners, and approximately $3 billion in funds under management.
The merged entity may be listed on the Australian Stock Exchange in the next three to five years.
