In a statement on the ASX, Yellow Brick Road (YBR) said INPRO, an authorised representative of The Advice Exchange, will acquire advice relationships and recurring revenues from roughly 150 YBR Investment Services clients for approximately $425,000.
“YBR’s decision to sell this business was based solely on the YBR Wealth Division focusing on the scale that the YBR branch franchisee and Vow broker and adviser network and other platforms can provide,” the statement said.
YBR executive chair Mark Bouris said the deal would ensure YBR Investment Services clients were provided with the “best financial service possible”, as INPRO is better positioned to offer this degree of service.
“YBR Investment Services is a stand-alone legacy business within the broader YBR Wealth Division of the YBR Group and its portfolio did not fit within the operational structure required for a branch and broker focused network,” Mr Bouris said.
“We will work with INPRO to ensure this transition runs as smoothly as possible.”
The transaction is expected to be completed within two months from 26 June 2018.