Investorfirst, Wilson HTM deal gets the go-ahead
Investorfirst's stockbroking business is set to transfer to Wilson HTM by the end of February after the pair signed a binding agreement for the deal.
Wilson HTM will make a transition payment of up to $58,500 plus GST over six months and will take on Investorfirst's liabilities in regards to transferring staff members' accrued entitlements.
Wilson HTM will also forgo a rebate payment from Investorfirst relating to the Next Financial business.
Investorfirst expect the white-labelled platform to deliver a further $1.4 billion in funds under administration over the next two years, while the divestment of its stockbroking business should deliver "ongoing cost-savings" according to Investorfirst chairman Bruce Higgins.
The business will transfer a number of advisers, clients, research analysts and staff to Wilson HTM to switch focus to its HUB24 investment and superannuation business.
Subject to due diligence, Wilson HTM will white-label the HUB24 platform for its small- to mid-size clients within the first half of the year. It will then embark on a two-year development process to customise the platform for its high net worth clients.
The agreement includes a provision for Wilson HTM to work exclusively with Investorfirst in achieving the solution over the next two years.
HUB24 will also act as the preferred transition partner for the Next Financial business.
Higgins said the terms of the transition were positive for its shareholders, clients and staff, and the divestment of its stockbroking business would place the business in a more sustainable financial position.
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