Financial planning licensee Fortnum Financial has agreed to merge with netwealth’s subsidiary Financial Planning Services Australia (FPSA), creating a new entity.
The new entity will be 50% owned by Fortnum and 50% by FPSA’s 20 member firms.
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The deal, which is subject to regulatory approvals, is expected to be completed by 31 October 2015.
netwealth will offer a range of services including platform, managed account, financial planning software and compliance services to the combined company including FPSA’s 20 member firms, 54 principal practices and 130 advisers.
netwealth joint managing director Michael Heine said the merger will provide FPSA advisers access to a range of dealer services ofered by Fortnum while allowing Netwealth to focus all of its efforts doing what we do best, and not be in competition with our business partners.
"We decided to partner with Fortnum because we wanted a group with the technical, compliance, practice development, business coaching and investment skills to support our advisers, but also a group that shared our commitment to championing a strong IFA market," he added.
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By GlobalDataFortnum Financial managing director Joel Taylor said the merger of Fortnum and FPSA operations will deliver cost and scale benefits as well as strengthen Fortnum’s footprint nationally, particularly in the eastern seaboard.
"Our principal practices enjoy being a shareholder and having a say in the direction of the AFSL but with the added benefit of scale, support and a collaborative relationship with other like-minded advisers," he added.
