PIS to bare soul in proposed listing


The proposed merger of Professional Investment Holdings (PIH) with insurance premium funding company Centrepoint Alliance will expose the big dealer group to the scrutiny that goes with being publicly-listed.
The proposed merger between the two groups continues to progress. Centrepoint chief executive Tony Robinson said the group was weeks away from completing due diligence, but that he was confident there would be no sticking points in the remainder of the due diligence period.
“We’re comfortable that we understand [the business]. There’s always a chance something will come out in due diligence that we’re not aware of, but we’d be very surprised if that’s the case,” Robinson said.
“They’ve been tremendously open about all the challenges and changes that they’re facing and dealing with.”
Many of the challenges faced by Professional Investment Services (PIS) in recent years have been the result of investment decisions that have come to haunt them.
But possibly the biggest challenge facing PIS in the current environment are regulatory reforms that challenge the business model the group has been built on.
Robinson said the proposed merger of Centrepoint and PIS “strengthens their capacity to deal with the current changes — and hopefully the ones that are undoubtedly going to come in the future”.
He referred both to PIH’s need to access capital, as well as the benefits a more transparent operating structure could deliver the group.
“A listed entity requires more transparency in the marketplace, and therefore people get a comfort from getting better access to the insides of the business,” Robinson said.
“It’s worked well for the other large independents, or at least two of the independents (being DKN and Count).”
At times there have been inconsistent messages and numbers emanating from PIH head office, and PIS has for some years now been the target of industry speculation — a public relations issue the group sees as a serious concern.
“I think there’s always been an absence of understanding of the business because it’s been a private business,” Robinson said.
“In the public arena there’s no uncertainty about it, it’s all there for people to see and understand. And that transparency will help it as a business in this environment, which is really requiring more transparency.”
For Robinson’s part, he sees the merger as the first step to adding strength and scale to what he aims to build into a diversified financial services company.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.