Potential implications for SFG from WHK forecast
Financial services group WHK has forecast a 20 per cent decline in earnings amid continuing speculation over the status of a merger with SFG.
For its part, SFG has acknowledged that the announcement has "potential implications" for the merger.
WHK announced to the Australian Securities Exchange (ASX) today (Monday) that business conditions remained "very challenging" in its business advisory practice and that "discretionary business advisory services in larger regions and capital cities have declined for the third quarter".
It said, however, that the remainder of the business - accounting compliance and financial services - remained broadly in line with forecast.
This compared to the announcement by SFG which reported funds under advice, administration and management had improved as at the end of March compared with the end of the previous three-month period.
The SFG announcement to the ASX said the company had noted the WHK announcement but that it remained in discussions in relation to a non-binding indicative merger proposal.
It said it had received commercial due diligence material from WHK's parent and was awaiting further material information.
"SFGA will discuss with WHG (WHK's parent) the potential implications of their announcement today on the possible terms of a merger proposal, and following review of further information to be provided," it said. "There is no certainty that a transaction will eventuate and SFGA will keep the market updated in accordance with its continuous disclosure obligations."
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
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.
