Fortnum completes multi-million dollar deal to buy-out ANZ

Fortnum Financial Group Limited has successfully acquired ANZ Banking Group’s 20 per cent stake in the company in a multi-million dollar deal that catapults it to one of Australia’s largest independently-owned Australian Financial Services Licensees.

Fortnum’s management, staff and financial advisers raised the capital to buy out ANZ, who originally backed the dealer group in 2010.

Fortnum Financial Group executive chairman Ray Miles thanked ANZ for its early support but said the Fortnum Group had evolved in line with the changing needs and wants of clients.

“Our goal has always been to provide world class, objective financial advice, and our clients and member firms felt it was essential to standalone, unencumbered by institutional ties,” he said.

“Fortnum has always had a client-first strategy, which aims to drive margins and hidden fees out of products to protect the adviser/client relationship.”

Miles said the Company received overwhelming support from staff and advisers for the offer which reflected their confidence and conviction in Fortnum’s current business model and long term future.

Around 80 per cent of the Company’s 28 practices and 87 financial planners, and selected staff nationally participated in the scheme to purchase ANZ’s Class C shareholding.

Fortnum chief operating officer and head of finance, Ian White – who played a key role in the deal – added that Fortnum’s ownership structure placed it in a strong position to continue growing and recruiting new practices.

“We believe Fortnum’s open and transparent model will resonate with an increasing number of advisers,” he said.

Miles said Fortnum’s independently-owned structure, client-centric and collegiate culture, and Charter of Independence presented a unique and compelling value proposition in a market saturated with institutionally-owned dealer groups. He said an increasing number of advisers were agitating to break-away from institutional control and influence, which would only intensify over the next few years.

“We want to partner with advice businesses who want to be part of an innovative, independently-owned licensee,” he said.

“We will be selective but we want to attract high quality advice firms as we move into the next stage of our growth. We have spent the last two years consolidating the business and developing a range of innovative advice tools for our practices.”

Miles cited the June appointment of former MLC business growth manager Joel Taylor to the newly-created position of national sales manager as evidence of the Company’s commitment to growth.

ANZ will continue to provide dealer-to-dealer services to Fortnum.