Financial services group Yellow Brick Road (YBR) is on the acquisition trail just a few months after opening its doors.
YBR, which is still in its building phase, plans to increase its adviser numbers through a national recruitment and acquisition plan.
YBR chief executive Bryan Davies said the group is in talks with a number of financial planning groups to boost its adviser numbers.
Davies said YBR plans to have between 30 and 50 advisers on its books in the coming months.
“We’re in talks with five groups,” he said.
“Though we’re not starting a dealer group, these are individual companies – they’re not aligned or part of a dealer group.”
While he would not name names, Davies said he actively approached the five groups, which are based in Sydney and Melbourne.
When asked what he is looking for in potential acquisitions Davies said each group has to have in excess of $100 million in advice.
If acquisitions are successful, the advisers within the groups would come on board as employees of YBR, Davies said.
There is also a chance in the future YBR may list, though at this stage if such a move was to happen the company would only offer a partial initial public offering, he said.
As well as providing financial advice, YBR will provide accounting, wealth management services, insurance, estate planning products, stockbroking and direct packed investments.
The group will use a transparent fee structure and will rebate any trailing or other commissions back to the client, Davies said.
Under the YBR fee structure, financial advisers will be paid a salary and a bonus. The bonus will be based on a number of criteria and will not be directly linked to revenues from the client.
For other company services, most costs will be a flat or hourly fee for service. The cost structures for stockbroking and insurance are still being finalised.
YBR will provide investment advice and portfolio management services using its own model portfolio.
YBR is personally financed and owned by former UBS banker Davies and Wizard founder Mark Bouris and staff.
