BT has been suggested as the most likely home for advisers from the Australian Financial Services (AFS) Group if the company’s financial situation deteriorates further.
InvestorDaily has been told by two separate independent sources, who did not wish to speak on the record, that AFS has been in conversation with multiple parties about taking over some AFS practices.
BT is the major group in the discussions, both sources said.
AFS has been looking for an institutional owner for some time but has so far been unable to come to an arrangement, InvestorDaily has been told, with the discussions now moving to finding a potential new licensee for its practices.
One source said AFS had performed a business review and is now considering breaking the business up, handing back the licence and looking to move its representatives to another licensee. BT would look to acquire the practices on a selective recruitment basis rather than as a group, due to compliance concerns, the source stated.
The other source said non-adviser employees at AFS are likely to lose their jobs but are currently still being paid, meaning the company is still solvent.
InvestorDaily yesterday revealed the contents of an email sent from AFS chairman Barry Stephen advising stakeholders that if shareholders of the group’s Strategy Portfolio Limited (SPL) exercised put options in SPL then AFS may be unable to meet its debt obligations. This could result in company directors placing the company in voluntary administration, the email stated.
The exercise period ended on 28 February, but AFS have elected not to comment on the outcome, nor on suggestions that BT may acquire some AFS practices. BT was approached for this story but also elected not to comment.
