OAMPS buys into financial planning
Listed insurance brokerage OAMPS has entered the financial planning business through the acquisition of Melbourne-based PSB Financial Services.
Listed insurance brokerage OAMPS has entered the financial planning business through the acquisition of Melbourne-based PSB Financial Services.
OAMPS paid an undisclosed sum for PSB which includes financial planners Ian Paterson, Chris Benson and risk adviser Russell Snibson.
OAMPS national strategic development manager Mark Silveira says the purchase gives the group access to the full gamut of financial services. Most of its revenue currently comes from general insurance broking services, offered by its 80 broking representatives.
He says it is becoming increasingly important for insurance brokers to diversify into the full range of financial advice.
“Brokers who do not embrace the financial services opportunity are unlikely to be in business within five years,” he says.
“The advent of CLERP 6 has put brokers on notice. Clients expect a complete range of financial services via professional and competent advisers.”
OAMPS acquisition of PSB follows its decision to sever its strategic alliance with OFS. According to Silveira, having OFS as an “arm’s length” financial services partner did not work for both firms so OAMPS decided to go down the route of importing the skills and knowledge of a financial planning and owning the busi-ness.
Prior to the sale, PSB was owned by its three advisers. All three will take an equity stake in OAMPS. Chris Benson takes on the role of chief executive of the OAMPS Financial Services
Silveira says PSB decided to sell the group after first investigating how they could expand the business internally.
“They decided they could do two things. They could either expand significantly which meant huge capital expenditure or they could be content with where they are,” he says.
“They are all go-getters and weren’t content to remain stagnant. They decided they could merge their business into OAMPS and leverage off our customer base and lower unit cost for capital expansion.”
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