More than a dozen former Mawson advisers have rejected plans to stay with the group when it merges with Millennium3 (M3), choosing instead to leave on mass.
Fourteen Queensland-based planners have joined Risk Investment Adviser Australia (RIAA) rather than be swallowed up in the group's merger with the ING owned M3.
The defecting planners were said to be unhappy with conditions laid out in the acquisition agreement with M3 and left on mass to join the Parramatta based boutique.
"A number of planners said that they were uncomfortable going to a big institution, and as June 30 closing of the deal got closer more and more of the planners decided, after hearing what they and we had to offer, that it would be better for them to join us," RIAA managing director Grant Scalmer said.
Negotiations between RIAA and the breakaway group started about a month ago.
"With no disrespect to M3, once you become part of a big institution you lose that personalised service, which is what these planners want to provide," Scalmer said
In April, IFA reported a number of Mawson's 104 planners were not happy to be joining an institutionalised organisation.
M3 paid $7.94 million for Mawson, but the price will be cut if Mawson advisers fail to meet brokerage revenue performance criteria set out by the new owners.
M3 completed the Mawson acquisition on June 30.
