The deal ends a 12 month search by the New Zealand firm for a suitable acquisition in the Australian market.
Managing director Craig Dawson says the aim of the deal is to build a truly Australasian firm based on the Spicers model.
"The alliance is based on the sharing of resources in three key areas of the business: financial advice, marketing and technology and investment management."
He says one of the key things Spicers bring to the group is its investment management skills, which Monitor Money doesn't have.
Currently Spicers in New Zealand puts client money into funds it manages, while Monitor Money uses other firms' funds.
Dawson says there are no immediate plans to shift Monitor Money investments into Spicer's managed funds.
Spicers developed its own funds as it was, "the best way to get investment management expertise," he says. The idea being that it was better to have the expertise through employment contract as opposed to investment management contract.
Monitor Money is very strong in the area of wrap account administration and financial planning software.
Dawson says Spicers in New Zealand can use some of the advanced technology Monitor Money has.
Currently Spicers outsource their portfolio administration to Jacques Martin New Zealand.
Monitor Money is, according to Money Management, the 74th largest firm in Australia. It is privately owned and has 18 financial planners in 11 offices. The firm, according to the survey, has about A$500 million under administration, however it also has a similar amount in administration and services it handles for third parties.
Spicers expansion into the Australian market is made possible by the capital resources of its 80 per cent shareholder, New York-based Sterling Grace Corporation.
Dawson says one of the potential options further down the track, after the two businesses are integrated, is to list the financial services firm.
However, Dawson is still keen on further acquisitions in Australia and further abroad.
Dawson and fellow Spicers director George Kerr are now based in Sydney.
| « AMP has good 99 in NZ | Get your tax questions answered online » |
Special Offers
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved