Centrepoint Alliance (Centrepoint) will reorganise 11 of its subsidiaries, including a number within its wealth division, as part of the company’s continued cost saving measures.
The listed financial services firm gained federal court approval late last week for the reorganising of scheme of arrangements for the corporate entities All Star Funds Management Limited, Blueprint Investment Services Ltd, Discovery Investment Services, Diversified Portfolio Managers Limited, and IFMA Investment Services Pty Ltd.
The changes also affect the schemes of Insurance & Finance Managers of Australia, Mentor Investment Services Limited, Parramatta Site Developments Pty Ltd, Professional Investment Asset Management Pty Ltd, Step By Step Guide Pty Ltd and Wealthinfonet Admin Pty Ltd.
Centrepoint managing director Tony Robinson told InvestorDaily the decision to reorganise the schemes was part of the company’s cost cutting plans.
“We’ve had a very large number of companies in the structure and they all cost money to organise and to manage,” Robinson said.
“[It’s] part of the process of simplifying the business and to reduce the overhead burden of the business.
“We’re always looking for ways to do business more efficiently.”
Under the terms of the court order, all of the schemes under Star Funds Management Limited will be transferred under Ventura Investment Management.
The schemes of Blueprint Investment Services Ltd, Discovery Investment Services, Diversified Portfolio Managers Limited, Professional Investment Asset Management Pty Ltd and Mentor Investment Services will be transferred to Investment Diversity.
Schemes of IFMA Investment Services Pty Ltd and Insurance & Finance Managers of Australia will be moved under Professional Investment Services.
The schemes of Step By Step Guide Pty Ltd and Wealthinfonet Admin Pty Ltd will be transferred to Centrepoint Wealth.
As a result of the transfers, the All Star, Discovery, Diversified, Blueprint, Professional Investment Asset Management, Mentor, IFMA, Insurance & Finance Managers of Australia, Step By Step, Wealthinfonet Admin will all be deregistered by ASIC.
In an affidavit filed to the court on 22 May, Centrepoint Alliance chief financial officer Ian McGee said there has been “no material change” in the financial position as disclosed in the unaudited balance sheets for each of the subsidiaries and companies involved in the transfer of assets.
McGee also gave evidence that “each of the scheme companies and transferee companies is currently solvent and able to pay its debts as and when they become due and payable”.
On 28 May the boards of directors of each of the transferee companies met to consent to and accept the transfers of the assets and liabilities as contemplated by the schemes, the court documents said.
