Mid-to-large-sized firms are emerging as suitors and some as cads to either rescue or swoop on the struggling small players.
On the financial planning front, some firms are keeping their cards close to their chest, announcing merger plans within their own ranks. Others are steaming ahead as though 2008 never happened.
Late last month, Patersons Securities signed an in-principle agreement to merge with the stockbroking business of listed advisory firm Tolhurst Group.
The combined entity expects to house more than 400 employees, 370,000 clients and one of the largest advisory networks in Australia.
Under the deal, the new business will trade as Patersons Securities Limited.
On the dealer group front, ING Australia increased its stake in dealer group Sentry Financial Group last week.
The stake increase comes just a few weeks after one of ING's dealer groups, Millennium3, informed the market of its planned takeover of Sydney-based IFA Securities.
Sydney-based financial planning firm Total Financial Solutions Australia is rumoured to be courted by a large independently-owned dealer group.
While no official confirmation has been given, the frontrunner is said to be Count Financial.
Movement is also being felt on the fund manager front, with UBS Wealth Management hiring seven financial advisers from major rivals.
Six advisers moved across from Macquarie, while one adviser moved from Goldman Sachs JBWere.
The return of merger and acquisition activity is a solid sign that many industry players are cash positive amid the market turmoil.
It is important for the morale of an industry for firms to flex their muscle and show their strength.
The activity also is unfortunately peppered with aftershocks from the market falls of 2008.
These aftershocks have come in the form of widespread industry job cuts.
MLC is the latest, with market turmoil forcing the group to cut 120 jobs, following a review of its resourcing requirements.
"Around 120 people are affected and we will aim to redeploy as many of these people as possible into other roles within the organisation. The role impacts are broadly spread across all areas of our business," an MLC spokesperson said.
In the final quarter of 2008, AMP made around 300 staff cuts, Axa Asia-Pacific Holdings dismissed 90 staff, BlackRock cut 10 jobs, Babcock and Brown announced plans to shed 850 staff and Macquarie Group reportedly let go 100 workers.
Hopefully the silver lining will widen in the coming months.
