The ASIC report into death benefit claims revealing the devastating impact of poor industry practices on grieving Australians has again highlighted the pressing need for change. While some funds have taken up the cudgels, others are still playing hardball on improving their service offering.
A Retirement Income Covenant obligation notwithstanding, there is still a paucity of these complex products on offer. The Advice Through Superannuation draft legislation might offer a way forward.
Centric finds ownership solution
(Pictured: Spiro Paule)
Centric Wealth and Financial Index Wealth Accountants will merge, assuming last week’s announced proposed agreed takeover proceeds, to become one of Australia’s largest, and unaligned, advisory groups, speaking for $7.6 billion under advice. This may have implications for the institutional part of the industry too.
Financial Index’s (Findex) backer, private equity firm KKR, will take out Centric’s private equity backer, CHAMP, under the offer to all shareholders. CHAMP announced it was putting its majority share of Centric on the market last year.
Centric had been making inroads into the institutional space as part of its expansion last year under chief executive, Phil Kearns. He had appointed Andrew Merhtens, a fellow rugby international, to offer Centric’s managed account system to big super funds which are looking to introduce member directed investment options to their members.
Merhtens moved from New Zealand to Sydney with his young family last year for the role. It is not yet known who among the senior Centric team, including Kearns, will continue under the new ownership structure.
Spiro Paule, Findex founder and chief executive, said in a prepared statement that the transaction would bring together two businesses with a strong focus on providing the highest quality financial advice for clients.
“The combination of the two businesses creates one of Australia’s largest, non-aligned financial advisory organisations,” he said. “We are both focused on providing the best possible advice and solutions to our clients. We will be able to share respective areas of expertise and offer clients and employees a greater level of sophistication and opportunity.”
One of Centric’s comparative advantages among financial planner dealer groups has been its technology in the managed account space. The merger with Findex could allow the development of this aspect of the business, with big super funds as potential clients.
