Independently-owned financial planning licensee Fortnum Financial Group and non-institutionally owned platform provider netwealth Investments Limited will imminently sign a deal to merge the operations of netwealth subsidiary Financial Planning Services Australia with Fortnum to establish a new entity.
The proposed entity will be jointly-owned by Fortnum and FPSA’s 20 member firms.
The move, which follows a review of netwealth’s core business operations, will release the group to focus on providing innovative investment, superannuation and administration solutions to financial planners and accountants.
Under the proposed agreement, netwealth will continue to provide a range of services including platform, managed account, financial planning software and compliance services to the broader Fortnum and FPSA group of 54 principal practices and 130 advisers.
netwealth’s joint managing director Michael Heine said the deal would provide FPSA advisers with access to an extensive range of leading dealer services provided 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 said.
“The new arrangement will deliver the scale and services required to meet the needs of professional advisers and their clients in a rapidly changing and highly regulated market.”
Managing director of Fortnum Financial Advisers Joel Taylor said the merger of Fortnum and FPSA operations would deliver cost and scale benefits, expand Fortnum’s footprint nationally but particularly in the eastern seaboard and importantly, strengthen the voice of the independently-owned advisory groups.
“netwealth is a leader in investments and administration with a reputation for delivering award-winning solutions, while Fortnum’s strength is high quality and customer centric advice,” he said.
“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.”
Source: Fortnum Wealth and netwealth
