AM Corp advisers get sales proceeds
Advisers withAM Corporationwill receive a part share of the proceeds from the sale of the business toIOOFafter former majority owner and found David Smith indicated he would fulfil his commitment to pass on proceeds to advisers.
At the time of the sale in March this year Smith indicated that financial advisers who had supported AM Corp’s LifeTrack investment and superannuation platform over the years would benefit from the sale.
However the amount individual advisers would get from the sale would depend on the level of business they wrote for AM over the past year, as well as the period of time they have been associated with the group.
Neither AM Corp or IOOF have revealed the final cost of the purchase and the level of proceeds passing to advisers has not been disclosed either with IOOF stating there are restrictions on the release of these figures due to a confidentiality clause in the sale documents.
Yet it is believed the total purchase price was no more than $31 million for AM Corp, well down from the $100 million expected when the sale was first announced, which had in turn cast doubts on the adviser payout.
IOOF managing director Rob Turner says the proceeds are in the process of being distributed to advisers, who would receive them as a margin share for all advisers who had business in LifeTrack and a cash payment to a smaller, select group of advisers.
Turner says advisers would be notified in the coming weeks as to their payments which IOOF backs in recognition of the support the advisers gave to the LifeTrack business.
AUTHOR
Jason Spits
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