Centrestone signs accounting partnership deal
Boutique financial planning groupCentrestone Wealth Advisoryhas struck a deal with the New South Wales arm of accounting firm Horwath allowing it to provide advice to the latter’s existing and new clients.
As both parties focus on the high net-worth sector of the market, and given neither is institutionally aligned, the pair believe there is a good cultural fit.
“This partnership secures our clients’ access to wealth advice from a firm with a depth of resources and expertise, but without institutional alignment,” Horwath chairman Michael Stibbard says.
The notion of independence was crucial to Horwath during its due diligence process Stibbard adds.
“This is so important to us that the partnership contract allows Horwath to terminate the relationship should Centrestone ever sell out to an institution.”
Meanwhile, Centrestone joint chief executive officer Michael Pillemer says the “increasing dealer group/fund manager alignment and industry consolidation have made it harder for clients to find quality, unbiased wealth advice on a fee-for-service basis. We see this model as a pointer to the way ahead for future financial planning/accounting partnerships”.
Stibbard says the accounting group is regularly approached by firms looking to acquire it, but stresses its clients are not for sale.
“Our challenge was to find the best way to continue to service their growing needs in the financial planning, corporate superannuation and risk insurance areas,” he says.
Pillemer says the deal is a significant opportunity for Centrestone, which has $1.3 billion in funds under advice, to work closely with Horwath’s 250 Directors and staff in catering to the firms client base that has been developed over 50 years.
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