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Aegis rejects claims it's exiting IFA market

Aegis says advisers may have misunderstood its move to streamline processes as a step back from the IFA market.

Wednesday, October 8th 2014, 6:00AM 5 Comments

by Susan Edmunds

Several advisers have told Good Returns that the ASB-owned investment platform provider is now only interested in big businesses and would not take on new advisers unless they were bringing significant sums of FUM with them.

Norman Stacey, of Diversified Investment Strategies, said he was told $8 million under management and six clients was not enough for Aegis. He said Apteryx/Amadeus also seemed only to be interested in the bigger players.

Stacey said that could be an issue for advisers as the new DIMS rules kick in. “Loss of custodial services could be an impediment to independents, as regulators and especially DIMS, I believe, requires a custodian.”

But ASB’s executive general manager wealth and insurance Nick Stanhope said Aegis was not moving away from independent advisers.

He said the IFA market remained an important part of Aegis’ business.

“We are currently socialising the idea of moving all adviser groups that use Aegis to a single contractual model which will be more efficient for them and us. This single contractual model, colloquially known as the “institutional” model, will provide advisers with the same system functionality and service flexibility they currently have.”

He said that model was referred to as the “institutional” model because it had been historically adopted by institutions using Aegis.

That could have led to a misunderstanding, Stanhope said.

“The market may have misconstrued this as Aegis pulling away from the IFA market. Aegis continues to show strong growth in funds under administration across advisers with growth over 20% in the last year.”

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Comments from our readers

On 8 October 2014 at 2:01 pm Murray Weatherston said:
With the greatest respect to the man from the ASB (in other words I am going to be critical of him) he did not address the issue Norm raises.

Norm has told me that Aegis was absolutely not interested in him as a client. He was too small.

This is at complete odds with what the Aegis man says.

As far as I know, Norm was not offered any (new) standard contract

Can you go back to the Aegis man and ask him directly "Did your people tell Norm that they would not deal with him or not?"

Norm has had enough trials and tribulations of late without him picking a fight with the ASB!
On 10 October 2014 at 3:29 am NormanStacey said:
Murray is entirely correct (as usual).
Peter Dines that Diversified's business was too small and tat a number of smaller advisors would be getting similar notice to leave Aegis. It was just not worth their while.
In the case of Diversified's remaining clients. Mr Dines told me they have 90 days to make some other arrangement.
Could ASB please clarify what their policies and minimums are?


On 10 October 2014 at 11:37 am Murray Weatherston said:
How do we get ASB to respond? PR Rule No 1 is "try to deny any story oxygen".
To counter that stance, let's try this.

Norman has confirmed to me in a private communication that "Peter Dines told me Aegis was not interested. No recourse or suggestion."

That is completely at odds with what Nick Stanhope said in the story.

It would be a sad day if the platform providers line up with the big end of town only.

Isn't the consumer supposed to have choice in this "brave new world" of regulation?
On 10 October 2014 at 5:27 pm Robert Oddy said:
I confirm that Peter Dine advised me at an Auckland briefing recently for PM Capital that Aegis was moving away from small value adviser business and that a $50 million value would be interesting.
On 15 October 2014 at 2:56 pm Murray Weatherston said:
If Aegis does not have minimums for new advisers joining their service, why would a Big 3 law firm be stating in a document I have seen:

"Aegis has minimum thresholds (in terms of total investments managed by advisers.) In order to enter into a separate contract agreement, advisers who do not meet those minimums need to join forces with other offices/advisers."

What does that law firm know that the ASB Executive GM denies?

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