Sequoia takes PCL adviser customer base
Sequoia Financial Group has entered into an agreement to acquire the advice elements of Philip Capital Limited.
Sequoia said the arrangement would see Sequoia Wealth Management acquire the customer base of PCL’s existing advisers and corporate authorised representatives who would come under the Sequoia Wealth Management brand from mid-July.
It told the Australian Securities Exchange (ASX) the client of 23 PCL advisers would be sent a negative consent letter by the advisers in coming days with the client transfers and adviser commencement with Sequoia expected to take place before mid-July, 2020.
As part of the transfer to Sequoia, PCL advisers had been offered agreements that would see them maintain their existing entitlements and conditions.
The announcement said the successful acquisition of the PCL customer base would add approximately 5,500 equity accounts to Sequoia’s executive and clearing business, Morrison Securities and see an increase of around $1 billion in funds under advice adding $4 million of gross revenue.
It said the acquisition consider might be up to $1 million depending on the number of advisers who accepted the offer.
The company said the purchase was consistent with Sequoia’s strategy of providing licensee services to the financial advice market and followed the previous acquisitions of Interprac, Libertas and YBR Wealth Management.
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.
