In a statement issued by the financial services company, Managed Accounts said the new business will be funded with up to $5 million to provide expansion capital to advice firms.
Managed Accounts added that PHL will initially hold up to 25 per cent interest in new acquisitions.
“PHL has been established by [Managed Accounts] on the expectation that the PHL board will seek to list it separately on the Australian Securities Exchange within two years of its initial investment in an advisory firm, with [Managed Accounts] planning to retain a 25 per cent interest in PHL,” the statement said.
“PHL will not seek to control or influence the board and management of the advisory firms which it partners with but will fully support the independence of underlying firms,” it said.
Pretty sure at some point this platform provider spruiked being a great option for IFA’s. To be fair they are not the only small/newish platform providers to do so. What they come to realise though is that having a really shiney commodity (platform) will not upseat advisers/licensees from their existing platform arrangement. What are their options after that? Go and buy distribution. The industry is in a real pickle. There will be no new platform providers that can operate without a tied distribution.
A product manufacturer owning distribution?…,What could possibly go wrong
Practice owners. Grab this offer with both hands while it’s there.
Take the money & RUN! Fools don’t come along often.
You all know/understand where this industry is heading surely?
Sell, sell, sell!
Just what this industry needs – more advice from product floggers. The only good news isthat the more this keeps happening, the closer we get to such arrangements being outlawed.
These product providers just don’t know when (or how) to stop themselves. Eventually they will kill the goose in their greed for “golden eggs”.
Tell me it isn’t so !
The banks via their wholesale lending arm are in on the act. Yes or no.