Challenger splits Garrisons and Synergy
TheGarrisonsfinancial planning group and theSynergymaster trust business will be split and run separately, as the result of ongoing restructuring occurring within theChallenger Internationalbusiness.
Garrisons is 100 per cent owned by Challenger and the split is part of sweeping changes made by acting chief executive Chris Cuffe ahead of the group’s merger withCPH Investment Corporation. These have included the dismissal of whole business development and sales teams from Challenger in recent weeks.
Garrisons managing director Kim White says the dealer group and the platform have operated under the same umbrella since inception but will now be grown independently of each other.
“We’re hoping that strengthening the skills will deliver a more effective platform for us. For Garrisons, our business is supporting our planners so they can support their client base, and we need a high quality administration service from Synergy.
“It signals that we’re really looking to build on the strengths within those businesses. There is a need to specialise with skill sets for the different parts of this industry,” White says.
White has just reassumed the role of managing director after a period of secondment to Challenger’s funds management business, taking over again from Michael Farrell, who has been acting in the position. White originally became managing director in February last year, when John Sikkema vacated the role to become executive chairman.
Although Synergy is predominantly used by the Garrisons network, White doesn’t rule out the possibility of other groups accessing the platform, though he stresses such a move is not a core business focus at this time.
“The Synergy offering is relevant and competitive in the marketplace, and we wouldn’t walk away if external groups wanted to use it.”
Garrisons also plans to relocate its corporate office from Hobart to Melbourne.
“Although our roots are in Hobart, and we don’t want to lose the culture and the ‘family feel’, the bulk of our franchises are on the mainland, so we want to be in close proximity to those,” White says.
While growth of the Garrisons group is a focus under the restructure, White stresses that given its track record for strong organic growth, acquisitions are a less attractive option.
“They would need to be commercially viable, because we don’t think a lot of dealerships are at the moment.”
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