Dealer group Avenue Capital Management has shut down its operations following its transaction with the IOOF-owned Lonsdale Financial Group.
“As a result of recent changes to the Avenue Capital Management Limited business, we will no longer be providing services effective June 30th 2012,” a statement on the company’s website said.
All 30 advisers associated with the group hade joined Lonsdale, part of IOOF Group, it said.
“Effectively, the alignment of all 30 advisers to Lonsdale’s AFSL (Australian financial services licence) means that the Avenue Capital Management AFSL will simply no longer operate,” Lonsdale chief executive Mark Stephens told InvestorDaily.
“All of the infrastructure and assets associated with Avenue Capital Management will transfer to Lonsdale.
“The advisers chose to join the Lonsdale licence, allowing them the freedom to trade under their own brand rather than as Avenue Capital Management advisers.”
As authorised representatives of Lonsdale, Avenue advisers would have access to dealer services including practice management, corporate governance, research and software support, Stephens said.
Avenue director Stephen Garrett said the IOOF transaction did not represent a purchase of the dealer group itself.
“We recognised that growth was something that was necessary and, in difficult market times, [growth] is something difficult to achieve. So we started initially in the marketplace looking for various options,” Garrett told InvestorDaily.
“We’re attracted to the advice style they have and the services that they provide we felt would result in a seamless transition to a larger organisation.”
A statement to clients on Avenue Capital Management’s website confirmed changes within the group structure and sale of Avenue’s holding company to Lonsdale.
“Avenue’s interest in the Avenue Investment and Retirement Services is also being sold as part of the overall transaction,” the company said in the statement.
“There will be a minor name change to the AvWrap Investment Service and AvWrap Retirement Service and a change in the trustee for the Retirement Service to IOOF.
“However, Macquarie will continue to administer and operate both services.”
The changes would have no impact on client investments, it said.
