The board of Easton Investments has formally recommended to shareholders that they accept HUB24’s proportional offer for the company arguing that it will deliver significant strategic benefits including the acquisition of Paragem meaning that Easton can become a leader in licensee and adviser services.
In target statement documentation released to the Australian Securities Exchange (ASX) Easton described Paragem as a strong strategic fit with Easton’s Wealth Solutions division which provide additional scale to support the development of technology to improve efficiencies and add new revenue generating services.
It said this was consistent with Easton’s strategic direction to become a leading non-institutional provider of adviser and licensee services.
“The strategic relationship with HUB24 is aimed at accelerating growth opportunities,” it said.
“Notably Easton’s plans to compete in the wealth training and continuing professional development market, as well as the potential to grow Easton’s adviser network.”
It said that there was an opportunity for Easton to become a leader in licensee and adviser services as it partnered with HUB24 to deliver efficient, cost-effective solutions and services to financial advisers, accountants and their clients.
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Vertical integration anyone? Lucky we had the RC to sort all that out LOL.
I guess if you put enough lipstick on a pig it may look like something else
I don't understand how under FASEA, adviser groups can say they have specifically partnered with one Platform group? How do they not have to provide comparisons or objective advice on platform choice? I see this everywhere at the moment, 'we have partnered with..." but you can't partner with a product provider, it doesn't pass law.
Fair points but this situation is actually a case of advisers becoming "controlled by" rather than "partnering with" a product company. Hub24 is becoming a mini AMP/IOOF. They are filling the vertical integration gap left by the banks.
Employees mate - it's all about bringing the advise back in the hands of the product.
Bozo you're spot on. We were told for the last 10 years how bad platform and advice partnerships are, spent untold thousands to get our AFSL and keep it all at arms length and this just keeps on happening, almost an article a day.
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