End of an era: KPMG looks at selling off planning arm
KPMG's financial services arm may soon be on the market.
KPMG's financial services arm may soon be on the market.
KPMG Financial Services executive director Max Weston told Money Man-agement the accounting group is considering a sale of its financial services arm, citing potential conflict of interest issues.
"A firm this size has a significant auditing practice and it is look-ing carefully to ensure its independent position is not in any way put under question," Weston says.
Weston declined to comment on whether any negotiations were underway, but says KPMG's position should be clearer within the next couple of weeks.
If the sale goes ahead, KPMG Financial Services will join a number of financial planning groups currently on the market or recently snapped up.
A fortnight ago, AMP paid $34.6 million for the Godfrey Pembroke business to boost its exposure to premium financial planning.
Investor Group has also been on the acquisition trail, snapping up Thomsons and Armitage Downie, reportedly giving it funds under advice approaching $900 million.
And there is still no news from Barry Lambert's Count Wealth Account-ants whether a deal has been struck on the business, although Lambert told Money Management earlier this year that he expects to announce the new owners towards the middle of the year.
AMP general manager of retail distribution Neil Swindells says God-frey Pembroke will be run separately "in every sense of the word".
"It is a good business and part of its strength is it independence," he says.
Swindells says the acquisition also adds to its adviser numbers which he believes is the largest financial planning group in Australia. There are 1,300 financial planners at AMP Financial Planning, about 165 at Hillross, 75 at AMP Solutions, and now 120 at Godfrey Pem-broke.
He says AMP hopes to extract synergies in product manufacture and de-velopment.
"Both Godfrey Pembroke and Hillross operate master trusts and wrap accounts. With the two under the same umbrella there may be ways to cut costs," Swindells says.
Swindells says AMP would be looking to make further acquisitions to broaden its distribution base, but only at the right price.
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