Merc revs up planning arm
Mercantile Mutual has embarked on an aggressive growth strategy for its financial planning business.
Mercantile Mutual has embarked on an aggressive growth strategy for its financial planning business.
Under the strategy, the group is seeking to both develop new financial planning dealer groups from scratch and acquire existing dealer groups. Last month’s estab-lishment of the Lynx Financial Services group and re-positioning of the Aust-brokers group under the Millennium 3 banner are two examples of the restructuring taking place.
Mercantile Mutual executives say the moves are an indication of how serious the group is about its financial planning which it regards “as a core business”. Details of the new strategy will remain under wraps until the CLERP 6 legislation is passed.
Mercantile Mutual subsidiary Advisor Investment Services has also developed a separate growth plan to acquire major stakes in individual financial planning prac-tices. Under the plan, Advisor will purchase up to 50 per cent of a financial plan-ning practice but will ensure control of the group remains with the adviser.
Advisor will look to acquire interests in groups both within the network and exter-nal practices. It is currently in negotiations with two planners.
Advisor Investment Services chief executive Wes McMaster says this is the first time a dealer group has embarked on such a strategy.
“The plan offers three distinct benefits. Firstly, it is a good investment for Advisor. We will only take stakes in businesses that offer good growth potential,” he says.
“Secondly, it provides stability in the network. Planners will be less likely to switch groups if their practice is partly owned by the dealer. And thirdly, if we take equity in businesses which are outside the Advisor network, they will then join Advisor and help bolster the number of planners in the network.”
McMaster says the strategy will be attractive to planners looking to establish a suc-cession plan for their business.
“If you look around, there are a number of business owners in their 50s who are looking to establish a succession plan for their business,” he says.
AUTHOR
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
