Listed advice network buys dealer group

Executive director and chief executive, David Newman, confirmed the news in a statement released on Tuesday, saying the dealer group has been in discussions over the past 12-18 months with other licensees that may be keen to enter a partnership.

“We see the future of the licensee model as being a flexible service provider engaging with new technology, enhanced practice management capability as well as facilitating succession pathways for those businesses seeking to exit the industry,” the statement read.

“In other words, we want to provide options for our advisers no matter where they are within their business cycle.

“Whilst always open minded to these discussions we have remained steadfast in our resolve that the firms and advisers we support, our staff and shareholders must all benefit from any engagement Sentry may pursue.”

Mr Newman confirmed that existing Sentry shareholders will emerge as shareholders in WTL, while he will stay on as managing director of Sentry and take on a “broader role of joint-chief operating officer of the WTL group”.

Fellow Sentry director Michael Harrison will also join the WTL board as a non-executive director.

“We will continue to operate both the Sentry and Wealth Today B2B brands,” Mr Newman said.

“While essentially Wealth Today and Sentry provide the same suite of licensing solutions, what has excited us all in this opportunity is that each entity has restructured over recent years perfecting different aspects of a licensee’s offering.

“The WTL team has placed significant emphasis on perfecting its compliance and risk-mitigation processes through development of a series of proactive processes that are forward-looking and very focused on the commercial viability of practices while also mitigating unnecessary risks. We know that an enhancement of this aspect of our engagement will be very positive.

“We will also be able to offer all our practices access to one of Australia’s most comprehensive library of financial literacy publications, with more than 100 titles across a broad range of topics, and tailored adviser training and workshops delivered twice-weekly via live video-link.

“These resources provide advice practices with significant client engagement and client recruitment tools, and the support required to navigate continued regulatory change.

“This engagement provides Sentry with the opportunity to continue to transform itself into a significant and highly respected National independent Licensee staying true to our unequivocal commitment to be free from conflict and institutional influence.

“This transaction marks a significant milestone for Sentry and is representative of our genuine commitment to our Adviser network and will result in us being able to deliver a stronger and broader suite of services and solutions.”

The transaction will formally take effect on 16 July.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.