Genesys wants adviser buy-in
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AXA-owned dealer group Genesys Wealth Advisers is offering close to 10 per cent equity in the business to advisers as it seeks to align advisers’ interests with the broader group's interests and stem a flow of outgoing member firms.
The group held a meeting of member firms in Sydney yesterday to discuss a new loyalty plan for advisers and unveil the new equity offer.
Member firms would be given the opportunity to invest in up to 9.09 per cent of the group via a loan funded share plan, with up to 10 million shares on issue with an initial vesting period of three years.
The group said the offer would see an independent director appointed to the board who would represent member firms' interests and give advisers a “direct influence in the running of Genesys”.
The independent director would be selected through Genesys’ national advisory council.
The equity offer is the latest in a recent round of incentives offered to advisers as part of a new remuneration and loyalty plan.
The initiatives have the signature of chief executive John Saint, who joined the group late last year following Greg Kirk’s departure.
Saint said recent initiatives undertaken by the group had seen it ‘reshape and strengthen’ its organisational structure, introduce a new remuneration agreement, and improve its investment research and technical services.
Saint described the latest equity offer as “the next step in the evolution of Genesys as it positions itself for long-term economic success”.
He said it was also an opportunity for member firms to partner with an institutionally-owned dealer group and “benefit from the growth of the organisation”.
The changes at Genesys follow the defection of a number of member firms to Ray Miles’ Fortnum Financial Group, a part-institutionally owned business where equity in the group is part of the package.
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