Fairfax exits InvestSMART
The Future of Financial Advice (FOFA) changes have acted as a catalyst prompting Fairfax Media to exit its InvestSMART business.
The company announced to the Australian Securities Exchange (ASX) today that it had entered into an agreement to sell InvestSMART to Australasian Wealth Investments for a cash consideration of $7 million.
The announcement said completion of the transaction was dependent on a capital raising process by Australasian Wealth and that in the event the transaction did not proceed Fairfax would be paid a break fee of $150,000.
Fairfax acquired InvestSMART in 2007 as an online financial services portal "providing self-directed investors with low cost access to financial information and products".
The announcement said that following the FOFA changes, Fairfax believed the sale of the company to a financial services provider made sense "so the business can continue to be developed for the benefit of its clients".
However the announcement also said the sale agreement provided for plans to maintain a commercial relationship between Fairfax and InvestSMART, including the sale of display advertising on investsmart.com.au and the promotion of Fairfax products and services to the InvestSMART client base.
Recommended for you
A former financial adviser has been charged over dishonest conduct, having allegedly encouraged individuals to acquire shares in his firm’s robotic trading technology, resulting in losses of at least $850,000.
A new report from the Financial Services Council has detailed what advisers value the most from their licensee, as well as the time and cost savings from being part of an AFSL.
Receiving advice and guidance has been identified as a factor making up a successful retail investment system. Vanguard has shared policy recommendations to ensure greater advice accessibility.
The pressure is on for technology providers as Investment Trends’ latest industry report reveals advisers are consolidating their platform use, directing the majority of funds to just one primary platform.
