IOOF-owned dealer group Bridges Financial Services has finalised its acquisition of Heritage Bank’s advice arm, but not all advisers have crossed over to the new owner, ASIC data shows.
ifa reported in late 2016 that Bridges Financial Services had finalised negotiations to purchase the financial advice business of Queensland-based Heritage Bank.
As at 1 January, only five out of 13 Heritage advisers had moved across to the Bridges licence. One joined Centrepoint Alliance while another was picked up by GPS Wealth. The rest are still considered inactive, the data shows.
IOOF did not immediately respond to ifa's request for comment.
One former Heritage risk adviser said she decided to rejoin her former employer, GPS Wealth-aligned Stream Financial, after being made redundant following the Bridges takeover.
“My former boss from Stream Financial, who I had kept in contact with, had sent me an email and offered me a position. I was extremely fortunate the way things rolled out,” Janis Glassop told ifa.
“But I know some of the other advisers with Heritage are still looking for positions.”
According to Ms Glassop, around 20 people were laid off in the acquisition, including advisers and administration staff. The transition process, however, was smooth, she said.
“It was difficult for Heritage to make such a huge chunk of people redundant, but I felt that I was extremely well looked after,” Ms Glassop said.
The sale of the business came in an effort to allow Heritage to focus on the growth of their core business. as well as provide customers with a broader range of financial planning options.
The change involves the transfer of Heritage financial planning customers to Bridges, with current advice and investments remaining unchanged, according to a statement.
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