The managing director of My Adviser has sought to reassure its financial advice network of its commitment to operate with objectivity in light of IOOF's proposed takeover of the dealer group's major shareholder, Plan B.
In a copy of the email obtained by InvestorDaily, Philippa Sheehan reiterates the dealer group's core values to My Adviser's 122 authorised representatives.
"I would like to remind you of what My Adviser stands for and that is, objective strategy based advice provided with only clients' best interest in mind," Sheehan said.
"I have been very vocal about this stance in the press recently and we've started to get a voice in relation to this issue.
"Over the last eight years at My Adviser I have built some very special relationships with the representatives in our group.
"The interests of you and your clients have always been uppermost in my mind, and I have represented you to the best of my ability. My relationship with you has always been open, direct, honest and without any hidden agenda. My commitment to you is unchanged."
The My Adviser chief also sought to clarify the timeframe of the proposed acquisition of Plan B by IOOF.
"I understand that you may still have a lot of questions but for the moment I can't tell you much more about the transaction between Plan B and IOOF, except to repeat what IOOF have put out in their communications," she said.
"IOOF says: 'This acquisition will take some time to complete. To be successful, IOOF needs to acquire 90 per cent of Plan B shares via shareholder acceptances. Unless the offer is extended, Plan B shareholders will have until early September to accept IOOF's offer'".
In the email, Sheehan also attempted to head off any approaches My Adviser planners might receive in the coming weeks.
"We are in an industry where around 70 per cent of financial services businesses are either bank or institutionally owned. The remainder are either tied to volume bonuses and white label product kickbacks with only a very small percentage operating as non-aligned businesses, free from product bias," she said.
"These businesses are threatened by the new rules relating to commissions, but even [Minister for Financial Services and Superannuation] Bill Shorten recently admitted it is too late for those members of the industry to change. I have no doubt these groups will contact you, if they haven't already."
Last Friday, IOOF reached an agreement with listed wealth management company Plan B to acquire the company at $0.60 in cash per share. Plan B owns 93 per cent of My Adviser.
"The board believes the takeover represents the best available value realisation opportunity for Plan B shareholders," Plan B said in a statement at the time.
The takeover of Plan B will add $2.2 billion to IOOF's fund under administration.
At 31 March this year, IOOF had $110.2 billion in funds under management, administration, advice and supervision.
The takeover offer is open for acceptance by Plan B shareholders until 11 September 2012, although IOOF can extend the period in accordance with the Corporations Act.
