MDS to purchase boutique planning group
Listed back office investment services provider, MDS Financial Group, will purchase boutique financial planning group Sequoia Wealth Group (SWG) and rebrand all its entities under the latter's name.
MDS had already purchased Sequoia Financial Group (SFG), which owns a minority stake in SWG, in December last year and had brought across SFG's asset management, self-managed superannuation administration and specialist investments businesses.
MDS chief executive and managing director Scott Beeton said the purchase of SWG, which currently has seven planners and $150 million in funds under advice, as well as the recent acquisition of SFG would allow the renamed group to expand its offering into the retail financial advice sector.
MDS currently offers market data software, stock broking and online trading services alongside the recently purchased Sequoia business lines with Beeton stating they would all operate under the SFG banner, pending shareholder approval.
SWG will also move away from its current licensee — Financial Planning Services Australia — once it receives its own Australian financial services licence which is expected to occur in the second quarter of this year and is looking at expanding after claiming to have received expressions of interest from other financial advisers and stockbrokers.
The acquisition will be made in exchange for MDS scrip and along with the name change is subject to shareholder approval with an extraordinary general meeting to be held in April.
AUTHOR
Jason Spits
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
