TFS plans further growth; equity partners
Countplus subsidiary Total Financial Solutions, which yesterday announced six new firms had recently joined the group, is looking at further additions through independent licensees and considering taking equity stakes in those businesses.
TFS chief executive Phil Aris told Money Management that the group had not focused on growth for around two years while it bedded down changes resulting from its acquisition by Countplus in 2010, but was now spending time identifying good quality businesses to join the group.
The recent moves added 15 advisers to the group, boosting it to 134 representatives (up from 114 in the middle of this year), but was now engaged in in-depth discussions with a number of firms.
Although the recent additions came from a mixture of institutional and non-institutional licensees, the firms TFS is currently in discussions with are self-licensed, Aris said.
They are larger firms in terms of funds under management and risk in-force premiums, with more than $1 million in annual turnover, he said.
Some of the conversations have been ongoing for as long as two years while both parties gain an understanding of each other's businesses and culture.
TFS is also taking the position that senior staff, including the chief executive, "work closely with these groups to put forth our proposition on how we plan to move forward on a medium to long-term basis," Aris said.
For firms that meet certain hurdles in terms of profitability, compliance and quality, TFS would also consider taking some equity participation.
"[As] part of our long-term strategy, we want to get more intimate with these companies by becoming an equity partner in their group, being involved in sitting on their boards [and] developing a strategy together," Aris said.
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
