Ipac extends influence in AXA and Asia
Thepush by Australian groups into the budding market for financial advice in Asia is set to continue, withIpac Securitiesto launch financial planning businesses in Singapore and Hong Kong.
Ipac executive chairman Arun Abey says both businesses are still in the process of receiving the appropriate regulatory approvals, but could be operational within a month.
The businesses will be fully owned by Ipac’s parent, the globalAXAgroup, although they will be managed by Ipac itself. Both businesses will operate under the Ipac banner.
The Singapore and Hong Kong operations will sit alongside Ipac’s existing offshore financial planning businesses in South Africa and Taiwan. Ipac also runs a master fund business in Ireland.
The move will put Ipac on par with other Australian financial planning groups, includingProfessional Investment Services(PIS) andAssociated Planners, which are making moves into the burgeoning Asian financial planning market.
Abey says both the Singapore and Hong Kong markets offer a considerable pool of savings and significant growth potential for Australian planning groups wanting to expand.
“Among the Asian markets, they are not the only attractive markets, but they are among the most attractive,” he says.
Abey says Ipac would look to grow both the Singapore and Hong Kong businesses organically by recruiting financial planners, but also by establishing strategic alliances with local groups.
The move comes as AXA, which bought Ipac last year, is looking to spread the boutique group’s successful financial planning model throughout the AXA group.
AXA group chief executive Les Owen says 250 advisers across itsCharterandAXA Financial Planningdealerships will move to a model of providing financial planning advice developed by Ipac.
This may include some Charter advisers switching to operate under the Ipac banner, according to Abey.
Last week, AXA reported a $77 million after tax profit in its wealth management business for the year ending December 2002.
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