TFS buys failed Silvalake advisory business
Wollongong-basedTotal Financial Solutions(Australia) (TFS) has picked up the advisers and client base of Brisbane-based Silvalake Financial Services after the latter was placed into liquidation last week.
The liquidation of the group took place after the court appointment on February 4th of a provisional liquidator, Downie and Associates with principal Jason Bettles saying Silvlake agreed to the move.
Bettles also confirmed TFS has purchased the planning business including the advisers and client register of the planning arm of Silvalake in a deal that began in late January.
While the deal was formally concluded, Bettles says the appointment of his firm as liqudator means the deal was not fully executed until yesterday evening when Downie and Associates moved outstanding commissions from Silvalake to TFS.
Since being appointed as liquidator, Downie and Associates has also released client registers and commissions, and is working through the release of remuneration that advisers were due to receive at the end of last month.
However Bettles stresses the process will take time as his group is working through the various commission agreements to gauge what each adviser is entitled to receive.
Downie and Associates became provisional liquidators for Silvalake Insurance Brokers, which holds the brokerage, and insurance and financial planning authorities after Silvalake indicated it could not make remittances to a general insurance group sparking the closure.
According to Bettles the liquidation was “a result of expenses exceeding income which led to the group being unable to make the remittance to the insurer”. This in turn lead to the court action and liquidation.
Silvalake, which had 52 advisers and 50,000 clients and was set up in 1979, offered a range of travel, general and motor insurances alongside its risk insurance and financial planning businesses.
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