Advisers line up to service Storm clients
About 60 bidders have so far applied to financial services company broker Kenyon Prendeville to provide financial advice to between 6,000 and 10,000 clients of collapsed dealer group Storm Financial.
Kenyan Prendeville director Steve Prendeville said most of the interested bidders so far are local advisers and dealer groups from Townsville, Cairns, Rockhampton Redcliffe, Brisbane, Gold Coast, Mackay and Sydney.
He said the broker, which has been mandated by Storm receiver KordaMentha to manage the bidding, expected the number of bidders to rise significantly on release of an ‘expression of interest’ document tomorrow. The document, which will include a profile of client funds under management, believed to exceed $495 million, and monthly gross revenues, estimated at $400,000, will be sent to those bidders who register with Kenyon Prendeville by March 20.
The criteria to be used in the bidder selection process will include a quantitative process and a qualitative overlay, Prendeville said.
“In the quantitative process, we will assess the price and terms which are prescribed within the expression of interest document that will be distributed.
“The qualitative overlay will look at what resources and advice experience the bidders have, and what their respective action plan is to get to the distressed clients in the quickest period of time."
Prendeville confirmed that the Association of Independently Owned Financial Advisers (AIOFP) has applied to advise clients on a collective basis.
The AIOFP is “putting put through a single bid to look after all the clients, rather than put in multiple bids for the different regions", he said.
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