West Australian financial planning group rmg financial services has increased its funds under advice (FUA) to around $660 million following the purchase of financial advisory group Piersbridge Consultants.
The acquisition is the third for rmg in the past year and will provide the firm with greater scale in risk insurance.
Piersbridge Consultants, a self-licensed practice with five advisers and five staff, had $230 million in FUA and $8 million in annual in-force insurance premiums.
The firm's financial planning business, Precise Financial Planning, has been incorporated into rmg.
The company's insurance business, Piersbridge Consultants, will continue to operate as a stand-alone entity for the next two years.
All the advisers are now licensed by AMP-owned Charter Financial Planning.
The decision to sell to rmg came after Piersbridge Consultants discussed options for the succession plans of its principals.
Piersbridge Consultants principal Ivan Cohen said the 10-year age difference between the principals meant they needed a flexible succession solution, particularly as one principal was close to retirement and the other was not.
The principals also decided that being a medium-sized practice was going to become more difficult, Cohen said.
"When we decided to find a partner we wanted someone that shared our focus on quality client outcomes, had the scale to win into the future and who could tailor the succession solution to meet our unique needs. Rmg financial services stood out as the right answer for our clients, staff and shareholders," he said.
Rmg principal Patrick Canion said rmg would continue to grow through acquisition.
