PIS enters the consolidator race
Professional Investment Services (PIS) has formed its own consolidator group, Professional Accountants Ltd (PAL), in response to competition from other consolidators.
The move is in retaliation to approaches by other consolidators to its accountant members. It will provide a range of services as well as acting as a buyer of last resort to ensure practices remain under the PIS banner.
PIS national development manager Stephen Poole says the driver behind the launch is that member firms have been approached, some on multiple occasions, to sell their practices outside the group.
"We had a strategy meeting two weeks ago and discussed the approaches to members of PIS and came up with this approach which we believe is the right thing to do under the circumstances," Poole says.
"We will not be forcing members into the system but we currently have more than 600 accounting practices which can feed into the new group."
PIS managing director Robbie Bennetts says the group's accountants asked for more support, access to resources and a buy-out strategy for retirement.
Poole says accountants can go with other consolidators but says PIS has a proven track record with financial planners and accountants.
"The strategy of PIS was to have accountants, financial planners and life advisers all in one group to build a fence around, and protect our clients. This new strategy is to do the same with those accountants in our group," Poole says.
"This means we have a group into which accountants can buy or sell a practice but what is there within the group remains in the group."
Both PAL and PIS will continue to actively recruit other planning and accountancy groups and promote cross-pollination between the two sides of the business.
"This is what the consolidators are after when they are seeking accountancy practices. They are seeking a way to move into financial planning through accountants," Poole says.
The head of the group is likely to be announced by tomorrow.
AUTHOR
Jason Spits
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
