AFS leaves ownership doubts behind; targets growth
Australian Financial Services will not be looking at a change of ownership or a move towards public listing in the near future, preferring to focus on both organic and inorganic growth, according to group chief executive and managing director Peter Daly.
The group this week announced a move to new premises in Queen Street, Melbourne, having long since outgrown the Collins Street premises where AFS used to run its professional development days, but did not move earlier due to uncertainty over the future ownership of the group, Daly said. The move will also save around $120,000 per year, he said.
The group lost its way to a certain degree, with the focus being placed on a potential sale, but now that the board has made a categorical decision that it is not looking for a buyer, the focus can return to improving the business, he said.
The group would be looking to grow through the acquisition of financial advisers and practices, as well as by acquiring or aggregating other licensees, but the major focus is on working with existing practices, he said.
There would also be development of new products and private labels, and there are two the group is close to announcing. It would also be revealing a new communication program aimed at communicating better with both businesses and clients, he said.
Despite the consolidation in the market, Daly said not only was he happy to continue as a non-aligned dealer group, but that he was delighted the institutions are doing what they're doing in terms of acquisitions.
"It polarises the marketplace and creates opportunities for us and for other groups," he said.
AFS is in discussions with about 30 practices, and Daly was hopeful some of those would join in the new year. Although lots of financial advisers don't want to be institutionally aligned, it is hard to compete with the recruitment and retention bonuses some of the large institutions are offering, he added.
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