PIS moves to avoid conflicts of interest
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Professional Investment Services (PIS) is seeking to buy its advisers’ shares in subsidiary funds management business Ventura Investment Management in an effort to remove conflicts of interest.
The parent company of PIS, Professional Investment Holdings, has proposed to acquire all the issued shares in Ventura, run by Kate Mulligan, in return for PIS shares issued to Ventura.
PIS managing director Grahame Evans said Ventura was established as an opportunity for the group’s advisers to be shareholders in a funds management group at a time “when there wasn’t perceived to be a conflict associated with ownership in that respect”.
Evans said the group had been adjusting its model “to comply with the [Financial Planning Association] guidelines and principles”.
Part of that process was trying to remove real or perceived conflicts of interest, Evans said.
He acknowledged there could be a perceived conflict of interest where advisers support a funds management business they are shareholders in.
“Ventura is a funds management business which is predominantly supported by PIS, and in looking at that we believe it’s probably necessary from a company perspective to actually own that business outright,” Evans said.
PIS halted further adviser shareholdings in the Ventura business some years ago, Evans said.
Meanwhile, the New Zealand arm of PIS (PIS NZ) has been placed in the hands of insurance distribution company Minerva Group.'
PIS NZ and the Minerva Group became a joint venture company last year. PIS NZ general manager David Keys has announced that he is leaving the group and returning to Australia. The executive managers of the Minerva Group will now manage the day-to-day operations of the joint venture.
Under the agreement, Minerva general manager Brent Wright will become general manager of both groups, with the support of Minerva chairman Maurice Trapp (also known in New Zealand as the coach of the Auckland rugby team).
Evans said PIS NZ has over 100 advisers, while Minerva, established two years ago, consists of about 45 insurance advisers.
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