Fiducian buys PCCU’s financial planning business

Fiducian Financial Services has acquired People’s Choice Credit Union’s (PCCU’s) $1.1 billion financial planning business. 

The acquisition was expected to strengthen distribution in South Australia and Northern Territory, lift funds under advice to $5 billion and grow its national adviser network to 92, the company said in the announcement made to the Australian Securities Exchange (ASX). 

Total funds under management, administration and advice (FUMAA) was expected to increase to $12.3 billion post-acquisition. 

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Fiducian said it would pay $12.6 million from internal cash resources with 70% being up front and the rest after 12 months for a recurring revenue of $7.6 million. Additionally, the company said it already had processes in place to ensure that completion “involving the transition of clients, staff and contracts, can occur in the coming months consistent with the agreement signed today”. 

Fiducian’s group executive chair, Indy Singh, said that its financial services team, headed by Robby Southall, were instrumental in this development, as well as in-house legal, human resources and financial teams, supported by PCCU chief member officer Maria-Ann Camilleri. 

“The acquisition significantly increases Fiducian’s distribution footprint across South Australia and the Northern Territory, and we look forward to welcoming more than 50 People’s Choice financial advisers and support into the Fiducian family,” Southall said. 

“It is a testament to the expertise, technology systems, client centric processes and proven skills of the financial planning network developed by Fiducian over the last 25 years. 

“We look forward to working with those selected as Fiducian authorised financial planners and staff and are confident of a seamless transition into the Fiducian family culture where client needs come first.” 




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Bridges will be pissed. No doubt they made a play for this.

1.65x headline RR, should be a pretty sound cash flow accretive move too.

Going to be interesting as one of Bridges' top referral sources is Heritage Bank and they could be merging with PCCU. Going to be interesting to see if Bridges loses that relationship. I guess they have their hands full trying to bed down the MLC Advice advisers, after they got rid of all of the successful self-employed Bridges practices.

why did they get rid of them? no money in the licensing for self employed I guess?

Every additional external practice authorised under a licence increases the licensee's risks and costs exponentially. They are too hard to supervise and control. This is why all the big licensees are encouraging practice mergers, culling small practices, and directly employing advisers.

Can't control the self-employed guys as much as you can an employee.

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