Former Bridges founder makes new planning play
Managed Accounts Holdings Limited, the publicly-listed entity established by former Bridges founder, Don Sharp has moved further towards growing its footprint in the financial planning space.
The managed discretionary account operator announced this week it planned to partner with advisory firms to acquire quality advice or portfolio management businesses via a recently-established wholly-owned subsidiary, Planner Holdings Limited.
In an announcement released to the Australian Securities Exchange (ASX) this week, Managed Accounts Holdings said it would be funding Planner Holdings Limited (PHL) with up to $5 million to provide expansion capital to selected financial advisory firms.
It said PHL would initially hold up to a 25 per cent interest in new acquisitions.
Sharp said advisory firms were increasingly looking to expand through acquisition but many weren't confident about how to do it, or who to turn to and partner with.
"The type of advisory firms that would look to partner with PHL would likely have a large existing SMSF client base or clients who may establish an SMSF in the future," he said. "Principals will have a sharp focus on growth with a strong desire to maximise efficiencies and profitability.
The announcement said PHL had been established by MGP on the expectation that the PHL board would seek to list it separately on the Australian Securities Exchange within two years of its initial investment in an advisory firm, with MGP planning to retain a 25 per cent interest in PHL.
The announcement said PHL would not seek to control or influence the board and management of the advisory firms which it partners with but will fully support the independence of underlying firms.
Recommended for you
As the first quarter of 2024 comes to a close, Money Management looks back on the corporate regulator’s bans and AFSL cancellations in the financial advice sector.
Insignia Financial is holding ‘relatively steady’ onto its rank as Australia’s second-largest financial advice licensee after the Godfrey Pembroke exit but Count is hot on its heels.
Liberal senator Slade Brockman has said the government needs to have a “cold hard look” at the level of regulation in the financial advice space and the costs of running a business.
FAAA chief executive, Sarah Abood, has warned changes in the first tranche of the QAR legislation around advice fees documentation could create more work for advisers rather than less.