Madison and PDG form licensee services business
Madison Financial Group has entered into a strategic agreement with Practice Development Group to form a single entity to provide licensee services to their respective adviser networks.
The Practice Development Group is the adviser representative board of Godfrey Pembroke.
Clime Investment Management announced to the Australian Securities Exchange (ASX) today that the alliance will consolidate the respective service offerings of the two groups and that, combined, they will have approximately $8 billion in funds under advice through 130 advisers.
The announcement follows on from Insignia Financial’s announcement of a new, separate advice entity.
The announcement said the alliance would involve the creation of a service company that is expected to generate significant synergies that will in turn generate strong operating leverage.
Clime has agreed to provide “in kind” commercial services over an initial two-year period for a 10% equity position in the new entity with the opening carrying value of the stake being assessed at around $400,000.
The announcement said that Optimise Advice Services, a business currently wholly owned by Clime and will provide related services to the self-licensed adviser community.
Commenting on the move, Clime chief executive, Annick Donat said the arrangement represents a significant opportunity for the firms’ advisers to build a “peer led community”.
She said the arrangement would also simplify Clime’s business model.
How much more evidence do we need that the Licensee model is over? especially all these ASX-listed ones. #gameover