ING Australia (ING) will acquire FSP Group, which comprises Australia's third-largest independent dealer group Financial Services Partners (FSP), FSP Funds Management and FSP Portfolio Services.
ING will fork out more than $50 million for the group. The deal will be finalised in the new year. The acquisition boosts its adviser network to 1500 - the nation's largest.
Professional Investment Services had 1465 planners at June 30, according to the latest IFA Dealer Group Survey.
As part of the deal, ING dealer group Tandem Financial Advice, will be integrated into FSP Group.
The combined group will be called Financial Services Partners and will comprise 110 firms with 222 advisers and 300 support staff.
Current FSP management will remain. FSP chief executive Geoff Rimmer and chairman Dr Frank Wolf will head the combined group.
Together with Tandem, Financial Services Partners will have $62 million in gross brokerage and fees, $5.5 billion in funds under advice, $750 million in gross inflows and $80 million of in-force risk.
"Dealer groups that prove the most successful align the interests of clients, advisers and the dealer group. Tandem didn't have that alignment, but FSP has that model," ING chief executive Paul Bedbrook told InvestorDaily.
"Are we taking on PIS or someone head-to-head? No."
Tandem Financial Advice managing director Andrew Doquile will help integrate the group and then leave.
Bedbrook said Doquile would leave on good terms and his next move was unknown.ING's adviser network comprises Millennium 3 (600 advisers), ANZ Financial Planning (432), RetireInvest (220), FSP (222, including Tandem) and ING Financial Planning (30).
