Fortnum completes ANZ buy-out
Fortnum Financial Group is set to become one of Australia's largest independently owned Australian Financial Services Licensees (AFSLs), after completing the purchase of ANZ's 20 per cent stake in the company.
The company announced this morning that it had undertaken the transaction with Fortnum's management, staff and financial advisers raising the necessary capital.
Fortnum Financial Group executive chairman Ray Miles thanked ANZ for its early support, but said the Fortnum Group had evolved in line with the changing needs and wants of clients.
"Our goal has always been to provide world-class, objective financial advice, and our clients and member firms felt it was essential to standalone, unencumbered by institutional ties," he said.
"Fortnum has always had a client-first strategy, which aims to drive margins and hidden fees out of products to protect the adviser/client relationship."
Miles revealed that 80 per cent of the company's 28 practices and 87 financial planners and selected staff nationally had participated in the scheme to purchase ANZ's stake in Fortnum.
He said the company's independently-owned structure, client-centric and collegiate culture, and charter of independence provided a unique and compelling proposition for the market at a time when growing numbers of advisers were looking to break away from institutional control and influence.
"We want to partner with advice businesses who want to be part of an innovative, independently-owned licensee," he said.
"We will be selective, but we want to attract high quality advice firms as we move into the next stage of our growth.
"We have spent the last two years consolidating the business and developing a range of innovative advice tools for our practices."
AUTHOR
Nicholas O'Donoghue
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.
