According to a statement to the ASX, the acquisition of MyState’s advice business is expected to be earnings per share accretive for Fiducian and is planned to complete by 30 June 2019.
The transaction will also see Fiducian and MyState enter into an ongoing referral arrangement that will involve ongoing referrals for the financial planning arm from MyState to Fiducian and home mortgage lending and trustee services from Fiducian to MyState.
“We are excited to consolidate our presence in Tasmania with this acquisition and to work with MyState to ensure that our clients continue to have access to quality financial planning services and, as well, have the benefit of trustee and home lending services from MyState,” said Fiducian head of business development and distribution Jai Singh.
“As part of the acquisition, we are also looking forward to welcoming financial planners and support staff into the Fiducian family, so where possible there is a continuity of service to clients.”
MyState managing director and chief executive Melos Sulicich said it looks forward to working with Fiducian to ensure that the transition for its customers is smooth, simple and straightforward.
“This is a strategic move for the MyState Group which allows us to simplify our business and invest for growth in the areas where we can have a competitive advantage,” Mr Sulicich said.
“Through our Tasmanian Perpetual Trustees brand, we are building a simplified national and highly scalable wealth management business focused on managed funds and trustee services.”
Fiducian has more than $2.7 billion in funds under advice and 40 practices nationwide.
that’s cheap..
Price is about right for 40 practices and remember AFSL do not get anything for FUM anymore
Spot on Anon. Clients rights to an advice relationship cannot be sold, at the end of the day the client owns the client. These transactions are merely the front for purchasing a database of new advice opportunities.
As with the CBA sale of Count to CountPlus, and Westpac to Viridian, you have to wonder if the advice business purchase price is artificially low in exchange for guaranteed business flow back to the original owner’s products.
If that is the case, could it be seen as a form of conflicted remuneration?