Privately owned dealer groups combine forces

In a statement released on Monday, it was announced that boutique advice group Ausure Financial Services had merged with Brisbane-based Insight Investment Services, owned by the Highfield Group.

As a result, the merged entity would combine with Highfield-owned dealer group Futuro Financial Services to form a single advice group, which would be led by Futuro founder Paul Kelly.

The group announced that former Ausure managing director Callum Mitchener would stay on as a board member of both Futuro and Insight, while Ausure general manager Jeff Haydn would come on board as general manager of Insight.

Mr Kelly said it was important for mid-size dealer groups to attain scale in the current environment to ensure they were still competitive and efficient.

“The disarray and dramatic downsizing within the institutionally owned dealer groups, the uncertainty caused by the Hayne royal commission and the educational requirements resulting from FASEA provides a great opportunity for groups like ours,” he said.

“It brings us greater scale because without it, mid-sized dealer groups will find it increasingly difficult to provide services, adequately supervise their network and meet compliance obligations and will, as has happened to many already, simply see them fall by the wayside.”

Mr Kelly added that the merger was part of the group’s strategy to build a long-term business that addressed the future needs of practice owners and provided the tools necessary for them to prosper.

This was essential given the “generational shift” taking place in financial advice, which would reward those businesses that could “get in front of the curve”.