An aggregator has continued its expansion path by snapping up a major stake in a leading finacial planner.
Finsure has announced it has taken a major stake in Spectrum Wealth Advisers. The company's managing director, John Kolenda, said the deal followed on the heels of Finsure's acquisition last year of LoanKit.
“Our combination with LoanKit has moved us into the top 10 brokerages in Australia and we will be building on that to break into the top five within the next five years,” he said.
Kolenda said Spectrum Wealth had more than 200 authorised representatives providing a range of financial services.
"The addition of Spectrum Wealth Advisers makes Finsure one of very few aggregators with a stake in a privately owned dealer group. This allows us the opportunity to provide our brokers with the benefit of more than one income stream by being able to offer customers broader financial solutions, including life insurance and investment advice," Kolenda said.
He said the deal meant finsure would be able to provide life insurance and other insurance products, along with various financial advice solutions. Kolenda said the move would also open new training opportunities for the company's existing brokers.
"Our brokers can be trained and mentored to qualify to provide financial advice solutions themselves; or they can choose to refer their clients to a trusted financial planner within our Group. This improvement in capability and overall expertise will enable us to offer better solutions for our customers. Being able to have more than one financial service provided by their accessible broker is simpler and more convenient, and when you take into account the financial advice is not conflicted, it all adds up to a win-win for clients," he said.
Kolenda tipped that Finsure would look to continue acquiring aggregators and financial planning operations.
“We will always keep an eye out for growth opportunities in addition to the success we have had growing the company organically,” he said.