FINANCIAL planning group ipac has expanded into Western Australia by acquiring a shareholding in Subiaco-based RMG Financial Services.
RMG managing director Rob Stone said the equity partnership would help improve the existing business as well as support future acquisitions.
“We were looking for a business solution that provided greater resources to grow but did not compromise the quality of advice we offered,” Mr Stone said.
He added that a key to future growth was to acquire businesses in Perth.
“ipac’s resources would assist with our acquisition targets and discussions are under way with several prominent targets.”
RMG presently has six financial planners and $150 million in funds under advice.
The equity partnership will give RMG access to ipac’s financial planning processes, marketing resources, investment funds and client communication facilities.
It also provides a long-term succession plan, with ipac able to buy out RMG’s three principals at a time of its choosing over the next three to 10 years.
The price of the buy-out will be based on an agreed formula, linked to the profitability of the business at the time.
The deal with RMG is ipac’s 10th equity partnership since the program was established in 2001.
ipac chief executive Peeyush Gupta said the program was structured to enable current advisers to continue to benefit from growing their business until they decide to retire.
RMG will continue to operate under the Charter Financial Planning dealer’s licence.
Charter and ipac are both owned by funds management group AXA Asia Pacific. RMG’s sister company, RMG Accounting, will be unaffected by the ipac partnership.