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
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
