South Australian-based credit union Australian Central is to expand into Western Australia, with a financial panning business formed by the merger of Australian Central-owned Perth firms, Financial Solutions and Framework Financial Planning.
The new business, to be located in Subiaco, will have funds under advice of more than $450 million, and 5,000 financial planning clients as well as 4,500 corporate superannuation members.
It will also have a substantial book of risk insurance business.
Australian Central is one Australia’s leading credit unions, with more than $2.8 billion in assets under advice. It has branches throughout SA and the Northern Territory.
The move into WA will initially focus on the financial planning business, but its longer term goal is to offer its full suite of credit union services in WA.
“We’re proud to be displaying the Australian Central brand for the first time in WA, and look forward to expanding our presence in the future,” Australian Central managing director Peter Evers said.
The WA launch comes at time when competition in the local financial services market is about to intensify. The merger of Home Building Society and StateWest Credit Society will result in a new business with total funds under management of over $3.5 billion.
Also, the Bank of Queensland recently opened a branch in WA, and has entered into an agreement with HBF for the health insurer to distribute some of BoQ’s financial services products.
Australian Central purchased Financial Solutions, established by Perth financial planner Bruce Parkinson, in 2003. Mr Parkinson and his staff, including corporate super specialist Eugene O’Sullivan, will continue to work in the new business.
Framework was established by former MLC advisers Lewis Vaughan and Mark Lewis in 2000, and was acquired by Australian Central in March. The new business will be headed by Mr Vaughan, who has been appointed Australian Central state manager.
