Financial services firm DKN Group has commenced integration discussions with IOOF, including whether its chief executive will remain with the firm following the completion of the deal.
“We’ve started to facilitate discussions around the integration and that both parties are starting to see good opportunities evolving from those discussions,” DKN chief executive Phil Butterworth told InvestorDaily.
When asked whether the discussions included Butterworth’s position as part of a merged group, he said: “In regards to my position, there is absolute intent on both sides that I continue on.”
He said it was too early to make detailed comment on the integration of the DKN business and its financial advisory offerings, with the key message the company was enforcing being “business continuity” for DKN’s clients.
In terms of branding, he said there was a chance the DKN brand would be swallowed by IOOF, however, it was unlikely the group’s licensee brand, Lonsdale Financial Group, would be retired due to its 20-plus-year association with Australia’s advice industry.
“There would only be changes to software, APLs (approved product lists) or anything like that if there was going to be an enhancement,” he said.
“Otherwise it’s status quo and maybe there might be some identifiable enhancements, but they may take months to implement so it really is about not changing unless it’s an enhancement.”
He said he had no intention to follow the path of industry rivals and offer retention incentives to the firm’s advice network.
“The way we engage with our clients and their commercial want to do business with us is really through our service offering and so even the shareholding wouldn’t be the decision maker as to whether the firm would stay with us or not,” he said.
“We’re not like the MLCs of the world with the hands out. We’d prefer to have a professional relationship based on professional delivery of services and an appropriate fee for them.”
DKN is expected to hold a shareholder meeting in September to allow shareholders to vote on the offer, with an implementation date for the deal, if approved, in October.
