PIS forms new consolidator
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.
AUTHOR
Jason Spits
Recommended for you
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.
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
