Two of the biggest firms which make up nationwide Broadbase chain of adviser firms are cutting their ties with the group to pursue their goals.
Broadbase Christchurch is leaving and will become known as Capital Financial Planning Ltd (CFP), and Broadbase Invercargill is to return to the name Bennett and Associates. They formally depart from the group on July 1.
The reason behind the move is a desire to focus on actually doing financial planning work, rather than spending time on industry politics, technology and other related issues.
CFP managing director Selwyn Paynter says, "we wish to focus our company and our business in the local environment."
He says planners have lost the focus of looking after their clients as they are spending too much time on issues, new technology and cutting costs.
Bennett says "we can focus on our own things" now the ties have been cut.
"It gives us the independence and freedom to choose our own destiny, technology and product providers," he says.
The split comes on the eve of the long-awaited Sovereign-owned Aegis technology solution going live. Reportedly all the Aegis bits are in place and working, and there is a regulatory issue with the Securities Commission to be signed off.
Broadbase Holdings executive director Marshall Garrett says these two firms were the biggest part of the group which had nine offices nationwide.
Together they accounted for more than $100 million of the group's funds under management.
Garrett says Broadbase now has in the region of $200 million under management.
He says the parting of the ways has been "quite amicable and we all remain positive about the direction that we are pursuing."
Likewise Paynter says the decision to leave "wasn't easy, but it was done amicably."
Planners in the Christchurch and Invercargill offices have been able to take their clients with them, and there is no legal action being threatened, as has happened when people have left other nationwide planning groups.
Garrett says he is currently in discussions with firms in Hastings and Central Otago about joining Broadbase.
Broadbase Consulting Group Ltd, which owned a 51 per cent stake in the Broadbase Holding company and dealt with the administrative and office functions of the group will become the Christchurch office.
Currently Garrett is recruiting staff for this office.
