The final payment for the client book of collapsed advisory firm Storm Financial will be paid in full next month by financial planning group Financial Index, InvestorDaily has learned.
"We've been very happy with the outcome of this transaction, as what we were expecting to buy has held up a year on without any massive repercussions," Financial Index chief executive Spiro Paule said.
The book was sold on 10 June 2009 for an undisclosed sum following the receiver KordaMentha placing the book in the hands of broking firm Kenyon Prendeville in March.
Paule said while there had been no mass exodus of clients, the group was continuing to develop relationships with clients, and while some were initially suspicious of the group's motives, Financial Index was working hard to restore their trust in the advice industry.
"While there was a lot of interest from other buyers many didn't want to be covered with any dirt that flew from the whole Storm debacle, nor be seen to be opportunistic," Paule said.
"Because we didn't get the book for nothing we had an invested interest in these clients."
Paule said Financial Index was continuing to build a local presence where Storm clients were based and still had every intention to be there for the long term.
"If these clients are forever scared and don't want to deal with anyone in the industry we understand, but if they want to seek us out we've put our money where our mouth is," Paule said.
Financial Index was staying in touch via mail outs, newsletters and phone calls, and its advisers were continuing to make as many client appointments as they could, he said.
"What we're trying to do is not about product sales nor is it about gearing strategies," Paule said.
"Because much of their wealth has been destroyed through their association with Storm, we're trying to increase clients' awareness about social security benefits as well as the advantages in restructuring their finances to extract extra value.
"We're also holding seminars on a regular basis to provide clients with extra financial coaching and information."
