Listed financial services firm Countplus's subsidiary, Advice389, has taken a 40 per cent stake in a Newcastle-based financial advice practice.
Announcing the move via the ASX last week, Countplus said Advice389 – which was launched in April 2015 – has completed its first partnership investment by taking a 40 per cent stake in Total Financial Solutions licensed firm Hunter Financial.
Completed on 7 August 2015, the stake was taken by the consideration of $2.79 million.
Countplus chief executive Phil Aris said that through having this interest in the financial advice business, Hunter Financial will be able to "actively pursue growth opportunities, not just for the business, but for staff".
"Young talent will be more likely to stay on due to the better career opportunities on offer, and senior staff have the opportunity to become partners in the business," Mr Aris said.
"It is our view that principals and senior employees have a greater incentive to grow their business when there is close alignment between the success of the business and their personal success, and this is what a shared-equity model achieves."
Mr Aris added that Advice389 is continuing to "actively assess a number of financial advice firms" and hopes to agree to further shared-equity partnerships in the near future.
The corporate regulator has permanently banned a Queensland financial adviser that was found guilty of misappropriating ...
Multiple professional bodies have called for “urgent reform” to expand accountants’ ability to provide financial advice
In a recommendation that the FAAA said would “address the problems with the CSLR”, the association has called for a ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin