Financial Research Group (FRG) will review the core operations of research firm Lonsec with the view to expand its broking division.
FRG managing director Jason Clarke said the intention as Lonsec’s new owner was to build on the firm’s existing strategic growth plans.
“Lonsec has a sophisticated strategic plan for growth, which we liked in our initial research into Lonsec, and we’d like to enhance it,” Clarke said.
He said FRG intended to review the company’s broking division and make sure it was “firing as well as it could be”.
“The research and investment consulting [divisions] of the business are very robust and we’re looking at the distribution of data and information and how that may be improved,” he said.
He said in terms of enhancements, there were three major areas in which opportunities might lie – wholesale, institutional and private client.
“So we could bring in underwriting opportunities, institutional deals and those opportunities are spread across the wholesale client base, which is financial advisers,” he said.
“We’re looking at that and the broking structure as a whole there is some opportunities to get that larger or more efficient.”
When asked whether the Lonsec brand would also be examined under the review, Clarke reiterated FRG’s commitment to retain it.
“Lonsec is significant in its space so we’re not going to mess with that, we’re going to enhance on them,” he said.
Since taking over ownership of Lonsec on 1 July, he said discussions had been held with Lonsec staff, including Lonsec research general manager Grant Kennaway.
“I think, to be really transparent all the executives really had to reflect on whether they wanted to stick around. To go from a parent like Zurich to Financial Research Holdings, all four of us, it’s very different,” he said.
He said opportunities also existed for the research and investment firm in Asia.
“The emergence of financial advice in Asia is significant. It’s not unsophisticated, but in terms of awareness and take-up it’s probably seven to 10 years behind Australia,” he said.
