In an ASX announcement on Wednesday morning, Centrepoint Alliance said it is acquiring the comprehensive advice review book from a wholly owned entity of Brighter Super, ESI Financial Services Pty Ltd.
The Queensland-based super fund has about 280,000 members, with Centrepoint becoming the preferred partner to provide advice to these members.
“This strategic acquisition will enhance Centrepoint’s ability to provide high-quality financial advice to a broader client base,” Centrepoint said.
“Brighter Super has recognised the need to scale its advice offering to provide more comprehensive advice to its members. Brighter Super has selected Centrepoint as its preferred partner due to Centrepoint’s existing relationships and geographical presence.”
According to Centrepoint, the acquisition includes up to 400 customers that will “potentially transition”, which in total, generate around $1 million in annual revenue.
Brighter Super has chosen Financial Advice Matters (FAM), a wholly owned salaried advice business of Centrepoint with about $1 billion in funds under advice across many funds, to provide comprehensive advice services to its members who require “more complex, personalised support”.
“The transaction is structured to ensure that only current review customers who agree to transition to FAM by 16 May 2025, will be included in the purchase price. The purchase price is based on a multiple of 1.25 times revenue that is transitioned,” Centrepoint said.
“Centrepoint will offer employment to an agreed number of Brighter Super’s financial advisers through novated employment agreements, depending on the number of customers that transition.”
FAM has also entered a three-year referral arrangement to provide comprehensive advice to Brighter Super’s members.
According to Brighter Super, the move forms part of a broader commitment to ensuring all members retire with confidence by “scaling its advice offering through formalised relationships with independent financial advisers”.
“One of our key priorities is strengthening our ability to support external financial advisers, because we want members to have choice in how they seek advice and who they receive it from,” Brighter Super CEO Kate Farrar said.
“We have a good understanding of where our internal team is best placed to provide advice and recognise that some members require more specialised support.”
Brighter Super added that the fund now supports more than 1,500 IFAs, has doubled its local business development team in Queensland, and rolled out a series of adviser-friendly platform upgrades, including a dedicated support line, adviser portal and enhanced online tools.
Brighter Super head of advice Steven O’Donoghue said he’s confident the partnership will deliver the right level of support for members.
“We selected Financial Advice Matters because of its strong alignment with our values, high service standards and presence in the communities where our members live and work,” O’Donoghue said.
“Our members will truly benefit from more personalised and specialist advice, while continuing to receive high-quality guidance that aligns with their individual goals.”
Another one bites the dust!