Libertas Financial Planning in the process of liquidation

4 September 2023
| By Rhea Nath |
image
image
expand image

Four years after its acquisition by Sequoia Financial Planning, dealer group Libertas Financial Planning gets into the process of liquidation and deregistration.

In an ASX announcement, parent company Sequoia said it plans to consolidate AFS licences, with management making the decision to transfer Libertas’ operations and customers to InterPrac Financial Planning and Sequoia Wealth Management.

This move aims “to achieve operational and cost synergies”, the firm said.

The decision had been confirmed in a general meeting of the members of the company on 26 May 2023, where it was resolved that the company be wound up and a liquidator be appointed. 

Sequoia acquired Libertas in August 2019. Under the terms of the agreement, Libertas would remain separate from InterPrac and would continue to operate under its own AFS licence brand and identity.

The acquisition is Sequoia’s eighth AFSL business that operates under their own identity and licence within the Sequoia Group.

The decision to consolidate AFS licences follows an “incredibly challenging” financial year for the group, which saw EBITDA fall 55.5 per cent to $5.5 million

In the year to 30 June 2023, revenue fell to $131.5 million, a 10.7 per cent loss from $147.3 million in FY22. 

The firm said the results were affected by weaker equity market conditions, non-recurring expenses, notably claims and penalties of $2 million, and unrealised losses on its share portfolio of $0.7 million.

Garry Crole, Sequoia chief executive and managing director, stated: “The year tested the resilience of the financial services industry with rising interest rates, global inflation, a reduction in the available adviser pool and a heavy fall in market volumes.

“Positively, we navigated the delicate balancing act of maintaining profitability while absorbing increased operational expenses from an inflationary market in addition to several significant non-recurring expenses.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago