FinSec expansion
Newcastle-based Financial Security Group has unveiled a plan to expand the group nationally after the opening of its first Sydney office, proving itself as a contender in the financial services industry.
The expansion plan follows the group's purchase of high-profile risk and corporate superannuation practice, Intersurance.
The exact figure paid by Financial Securities was not disclosed, however chairman Paul Chiplin says the group paid about "three times Intersurance's income stream."
Intersurance principal, Ray Gibson is the only member of the super group to be retained in the merger and will join Financial Security as its senior executive and head up the group's national corporate superannuation and risk division.
"We paid a relatively high price for Gibson. He has been performing an integral part in the merger," Chiplin says.
Chiplin says Intersurance will mesh with the financial planning side of the business and the purchase stems from a plan to develop a total financial planning solution. The purchase of Intersurance will enable the group to provide corporate and individual clients with corporate super, risk and general insurance, financial planning, rollovers, mortgages and estate planning.
Chiplin is also looking to expanding the group by assisting planners who are looking for a succession plan. Financial Security will target sole practitioners looking to retire over the next five to seven years.
Chiplin says as the Financial Services industry is maturing there are a lot of sole practitioners struggling to grasp the value of their practise that they have built up.
"The real issue that faces sole practitioners and very good operators is that they need to be able to pass on that relationship to their client," Chiplin says.
"The model plans to introduce a transition period for clients. This transition period will allow Financial Security's advisers to work alongside the sole practitioners to build a relationship with clients before the final takeover."
At the present time Financial Securities has a total of $400 million under advice with a total of 3000 clients.
Financial Security's Melbourne presence is still in talks, with Chiplin saying a joint venture has been formed with an actuarial group and the group expects a
Brisbane office to be operational by December this year.
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