Industry consolidation in the non-aligned sector through acquisitions is set to continue, as small and medium sized planning businesses face greater cost impositions due to the Future of Financial Advice (FOFA) pressures and unstable markets.
"We're looking for businesses that are clean, compliant, can fit into our culture and add value to our clients," Fiducian Financial Services managing director Indy Singh said.
Singh confirmed further acquisitions are on the cards in 2012, following the purchase of the Victoria-based retail business State Trustees Limited.
"A lot of [advisory businesses] have models that are not conducive to the future [as opposed] to our vertically integrated model, which includes our own in-house distribution network, compliance team, fund management and IT," he said.
Singh would not confirm the number of discussions taking place.
"We don't want to over extend ourselves but we're going to be very selective because we're a very specialised, medium-size group and we've received lots of interest from people," he said.
"But we [won't] take them all on as some don't fit our culture, which is extremely important or they don't fit our processes and compliance requirements."
Fiducian has 62 financial planners but are still in transition negotiations with State Trustees to confirm the number of advisers coming across.
The handover phase of State Trustees will be completed today.
