One of the largest remaining independent financial planning practices, Futuro Financial Services, is to be incorporated under the AMP banner after protracted negotiations.
This transaction will take place in three stages over five years, with an initial 10 per cent minority stake extending to full ownership over this period.
Futuro Financial Services consists of 80 financial advisers, 58 practices and approximately $2 billion in funds under advice.
Futuro director Dennis Bashford denied that the sale was a consequence of regulatory reform, claiming the company was “a business built to be sold”.
He added that the parties had been in casual discussion with AXA about some sort of partnership since 2006 and in serious talks with the now-merged AMP/AXA entity for the past two years.
“These are people that we know and trust,” he told PPO. “We have told our planners for years that the business was going to be sold.”
Futuro will continue to operate under its own license during the initial stages of the transaction but its financial advisers will eventually be included under AMP’s Charter Financial Planning license.
The decision continues the trend of non-aligned dealer groups seeking the security and support offered by large financial institutions.
Calling AMP “the standalone choice”, Bashford added that he held no fear about Futuro planners being restricted in terms of product or service offerings to clients.
“With the industry undergoing significant change, it is important Futuro has access to the type of support and expertise AMP can provide,” he said.
“To have a partner so well-placed for regulatory and industry change provides a high level of comfort to the network.”
Director of AMP’s Financial Advice Network, Andrew Waddell, said Futuro and its network of financial advisers would boost AMP’s growing adviser community.
“AMP has over a period of time forged a close relationship with Futuro and it is clear both companies share a passion for quality advice and a commitment to helping more Australians access quality financial advice,” he said.
“AMP is able to provide Futuro financial advisers access to resources and support that will help them grow their businesses.”
I think you mean “One of the largest remaining independentLY OWNED financial planning practices”.
Futuro never were and obviously never will be independent. Big difference between independently owned and independent.
Are you able to find out what % of their recommendations in the past has been to AMP products? They have had a close working relationship. Be good to know what % of recommendations go to AMP going forward. Anyone care to predict what the number will be?