AMP will purchase a further 10 per cent stake in Futuro Financial Services in 18 months with the financial services giant planning to acquire the balance of the company by 2017.
“Make no bones about it, the idea is to eventually have 100 per cent,” Futuro managing director Dennis Bashford told InvestorDaily.
“They [AMP] will take another 10 per cent in 18 months and then probably the balance in four to five years. Whilst we have the option to sell before then I don’t believe we’ll be doing that.”
Following AMP’s initial 10 per cent minority stake in March this year, Futuro has been experiencing strong growth, Bashford said.
The group has only lost one financial adviser since March, with the company experiencing significant adviser growth, he said.
“We used to have 80 [advisers], we will have 100 by the end of the year. We’re looking to grow very significantly [to] 120 in the next 12 months,” he said.
“We’ve never experienced growth like it. I think its two reasons, one is because I think we’re appealing to the market, also two, now we’ve got the distraction of who we will be involved with out of the way, it’s all focus on the business.”
Futuro will continue to operate under its own license during the initial stages of the transaction and eventually will be transitioned to AMP-owned dealer group Charter Financial Planning.
