Tower grows distribution ahead of CLERP

Tower Australia has acquired a sizeable stake in financial services group, Financial Services Partners (FSP), in an effort to reposition its distribution for the arrival of CLERP 6.

Tower Australia has acquired a sizeable stake in financial services group, Financial Services Partners (FSP), in an effort to reposition its distribution for the arrival of CLERP 6.

Tower Australia managing director Ken Boag says the purchase of 25 per cent of the FSP company is a valuable financial investment for his group.

FSP has more than 300 financial planners throughout Australia, with more than $2 billion under advice. It has more than $300 million in property assets under man-agement.

Tower will share its 25 per cent of FSP with company founders Rodney Adler, Frank Wolf and AIDC.

Adler and Wolf hold 34 per cent, AIDC holds 13 per cent of the company, with current managing director of Abacus Funds Management, David Bastian holding 11 per cent.

Tower’s purchase of company shares comes only days after FSP finalised a merger with property syndication group, Abacus Funds Management.

Abacus was purchased by Adler, Wolf and Bastian in April 1999 from the MLC group after their acquisition of Godfrey Pembroke.

“Tower’s shareholding in FSP is an important element in Tower’s repositioning of its distribution in response to the new Financial Services Reform Act (CLERP 6),” he says.

“We view the new environment as a major opportunity to expand distribution in the coming years.”