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FSP retains name

Victoria Young
— 1 minute read
FSP will retain its core principal of adviser ownership input in its new relationship with owner ING Australia.
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ncial Services Partners (FSP) will remain autonomous despite being swallowed by global institution ING Australia (ING) in a $50 million deal, the dealer group chief has stressed.

FSP advisers will continue to have their say in the running of the business, FSP Geoff Rimmer told InvestorDaily.

"Not only is it ING's intention for that to continue, but it's been written into all documentation," he said.

A 50/50 approach will be taken for the investment committee, the approved product list for life risk and platform steering committees. FSP will not be tied to ING products.

Rimmer has learned from the problems dealer groups experienced following acquisition and believes FSP advisers will be comfortable with being institutionally owned.

Earlier this year, 14 former Mawson advisers defected to join boutique Risk Investment Adviser Australia rather than staying with the group after it merged with ING-owned Millennium3.

To help retain advisers once they have received their share of the purchase price, a shadow equity plan will start in January.

"What we're trying to do in our partnership with ING is create substantial value for them and, based on us achieving our profit hurdles, we would like some of that profit to be shared with advisers in a shadow equity plan similar to what has been so successful to us getting this point," he said.

Rimmer said he was unconcerned about the recent people movement at ING Australia and said it was more important to have the FSP management team intact.

The FSP chief said the global scale of ING was important to the group and the future international export of the FSP business model was a possibility.

"Partnering with someone who can flex their muscles and deliver a better outcome for us in terms of the service we can provide and pricing advantage then that's a major plus," he said.

The deal between ING Australia and FSP will be finalised in the new year. It will boost the ING Australia adviser network to 1500.

 

FSP retains name
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