Dealer group builds Bridges in major expansion strategy
BridgesPersonal Investment Services has signalled that it will be pursuing a major growth strategy over the next 18 months, aiming to build its planner numbers to 200, while at the same time expanding its geographic presence, particularly in Queensland, Tasmania, regional Victoria and Western Australia.
The company has foreshadowed growth via both acquisitions and joint ventures, with an announcement expected soon regarding a major building society.
As a precursor to the growth strategy, Bridges has appointed former Garrisons state manager for New South Wales, Paul Brown, to the position of head of financial planning, with a brief that encompasses both recruitment and practice management.
Bridges managing director David Bleakley toldMoney Managementthe 200 planner target, up from the current 130, was a “stretch target”.
“If, at the end of the process, we haven’t achieved that target, it will be because we couldn’t find the right people,” he says. “We are not seeking to grow for growth’s sake.”
However, Bleakley pointed out that the growth target didn’t mean that the newly recruited planners would necessarily be Bridges planners, but rather planners who were supporting the Bridges master fund.
Bleakley acknowledged that the rationale behind the Bridges strategy was the emerging shape of the financial services sector, not least the implications of the Financial Services Reform Act (FSRA) and the associated compliance requirements.
While good advisers were in high demand, there was also an expectation that the increased compliance demands of the new legislation would see a number of smaller dealers seeking to return to the administrative umbrella provided by larger groups such as Bridges.
With that in mind, the Bridges strategy includes scope for acquisitions, the taking up of equity and strategic joint ventures.
Bleakley says that joint venture talks were already well-advanced with a major building society and that the arrangement was expected to be in place early next year.
The building society joint venture talks had followed on from Bridges’ successful deal to take a share in dealer group IGP Financial Services in conjunction with the West Australian Police and Nurses Credit Society.
Discussing the company’s geographic expansion, Bleakley says scope existed north of Brisbane, in Tasmania, in regional Victoria and in Western Australia.
“We have New South Wales pretty well covered, but there are still gaps in some of the regional areas,” he says.
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