Australian Financial Services (AFS) has cemented its relationship with Sydney-based licensee The Salisbury Group (TSG) by securing a strategic stake in the group.
AFS has secured a strategic stake in TSG, which owns 30 financial planning practices.
The deal has increased total funds under management at AFS to $6 billion. The Melbourne dealership is working towards an initial public offering.
AFS chief executive officer Peter Daly said it would use its combined size to strike better deals with fund managers, platforms and service providers.
"Each dealer group continues to operate separately under their own brand, but benefits greatly from the synergies generated by the merger," said TSG chairman Professor Tom Valentine.
AFS and TSG advisers have an expanded approved product list, enhanced training and consultancy services, streamlined back office and improved compliance.
The dealer groups have also introduced Lonsec research.
"The merger of two well managed, successful and profitable businesses that share a common commitment to adviser independence and support will generate many benefits for our respective advisers," Daly said.
"Furthermore, the unique position of AFS and TSG provides an exceptional value proposition for advisers and practice managers seeking a dynamic dealer group that is committed to quality independent advice and adviser growth and business success."
Last year, AFS bought out the 39.7 per cent stake Zurich held in the dealership. According to the IFA Dealer Group Survey, AFS added the most advisers in the past year at 58.
