Four adviser redundancies at ASB Securities

Four ASB Securities advisers elected to take redundancy offers last week during a consultation process as the company restructures its business.

Monday, June 28th 2010, 7:44AM

Two of the advisers made redundant have gone to First NZ Capital and it is believed the other two have gone to Macquarie.

ASB Securities managing director John McMahon says ASB is looking to discontinue its client advisory service and there are still two advisers remaining, with the consultation process continuing.

The new business structure provides equity and securities advice along a narrower range of securities.

ASB Securities chief executive relationship banking Stewart McRobie says it is looking to have a more targeted and focused model providing financial planning solutions to private banking and wealth management customers.

"We're looking to retain as many clients as possible and we're offering them a different advice model, but some people will continue to want broad based equity advice across all stocks and they will need to go somewhere else."

In a letter to clients earlier this month McRobie said that ASB had recently undertaken a strategic review of its wealth businesses and as a result it was proposing to limit the range of services it offers to its customers.

"If the ASB Securities client advisory service is discontinued we will still be offering advice on a limited range of top quality listed Australian and New Zealand equities and other investment securities. This advice would be supported by in-house research."

ASB Securities clients were told in the letter that their current investment portfolio, together with their existing security holdings, would not be affected by the proposed change.

It said ASB Securities would continue to offer equity trading, fixed interest trading and its margin lending service through its telephone and internet broking teams.

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