Paragem offloads dealer services business to netwealth

mergers-and-acquisitions/FOFA/financial-services-licence/financial-advice-reforms/financial-adviser/future-of-financial-advice/director/

8 November 2011
| By Chris Kennedy |
image
image
expand image

Paragem has sold its dealer services business Paragem Dealer Services to privately owned platform provider netwealth following an approach by the firm.

The move allows Paragem to focus on the growth of the Paragem Wholesale Australian Financial Services Licence (PWA), while netwealth wanted to further expand its adviser service offering to the independent financial adviser (IFA) market, according to Paragem managing director Ian Knox.

"As the number of non-bank aligned dealer groups shrink, we envisage a rebalancing of the market with a growing number of advisers adapting to FOFA (Future of Financial Advice reforms) and wanting to grow their practice by charging correctly for advice," Knox said.

Paragem aims to specialise in assisting this transformation to help practices increase in value, and has previously stated an interest in providing a non-aligned licence for accountants who do not wish to be conflicted with bank ownership, Knox said.

Both Knox and fellow Paragem director Charlie Haynes will remain as directors of Paragem Dealer Services in an ongoing management role and working with the netwealth board, netwealth stated.

"The acquisition of Paragem Dealer Services allows us to invest in a business which strongly supports the growth and maintenance of non-institutional dealer groups and advisers," said netwealth managing director Michael Heine.

"On top of the ongoing consolidation of the industry, FOFA is going to put further significant demands on independent advisers who will require greater advice and support in adapting to the changing regulatory and competitive landscape. We see ourselves supporting these groups in meeting these changes through the services that Paragem offers," Heine said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 4 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND