Fiducian buys PCCU’s financial planning business
Fiducian Financial Services has acquired People’s Choice Credit Union’s (PCCU’s) $1.1 billion financial planning business.
The acquisition was expected to strengthen distribution in South Australia and Northern Territory, lift funds under advice to $5 billion and grow its national adviser network to 92, the company said in the announcement made to the Australian Securities Exchange (ASX).
Total funds under management, administration and advice (FUMAA) was expected to increase to $12.3 billion post-acquisition.
Fiducian said it would pay $12.6 million from internal cash resources with 70% being up front and the rest after 12 months for a recurring revenue of $7.6 million. Additionally, the company said it already had processes in place to ensure that completion “involving the transition of clients, staff and contracts, can occur in the coming months consistent with the agreement signed today”.
Fiducian’s group executive chair, Indy Singh, said that its financial services team, headed by Robby Southall, were instrumental in this development, as well as in-house legal, human resources and financial teams, supported by PCCU chief member officer Maria-Ann Camilleri.
“The acquisition significantly increases Fiducian’s distribution footprint across South Australia and the Northern Territory, and we look forward to welcoming more than 50 People’s Choice financial advisers and support into the Fiducian family,” Southall said.
“It is a testament to the expertise, technology systems, client centric processes and proven skills of the financial planning network developed by Fiducian over the last 25 years.
“We look forward to working with those selected as Fiducian authorised financial planners and staff and are confident of a seamless transition into the Fiducian family culture where client needs come first.”
AUTHOR
Oksana Patron
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
