Centrepoint acquires Associated Advisory Practices
Centrepoint Alliance, the owner of Professional Investment Services, has paid in excess of $2.64 million to complete its purchase of boutique licensee support group Associated Advisory Practices (AAP), acquiring the 45 per cent of the group it did not own.
AAP was purchased by two schemes in which 5,626,172 Centrepoint Alliance shares have been issued to former AAP minority shareholders, valuing the acquisition at between $2.64 million and $2.92 million, dependent on the final share price valuation of between $0.47 and $0.52 per AAP share.
The issued shares are subject to escrow, with half of the issued shares held until 5 April 2014 with the other half held until 5 October 2015.
The purchase expands Centrepoint's suite of companies to include PIS, AAP, funds management groups Ventura Investment Management and All Star Funds, online financial services platform Investment Exchange, wrap account Mentor Wrap and mortgage originator and broker Australian Loan Company.
Centrepoint Alliance managing director and PIS chief executive John de Zwart said that AAP was receiving interest from new licensees each week and had recently signed its 200th member firm.
De Zwart said an increased demand for licensee support services was behind the growth of AAP which had already had a strong year.
"Demand for AFSL support services is growing and boutique practices joining the group are really valuing the service we can provide them including compliance, advice audits, training, conference opportunities and the tools to grow their business," he said.
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
