Financial advisory group HFM & Partners has cut ties with Axa Financial Planning and is set to join MLC-owned dealer group, Garvan Financial Planning.
The Melbourne-based group, which has $55 million in funds under management, handed in its letter of resignation to Axa executives yesterday.
"As part of our strategic plan to reposition the HFM & Partners business and build onto is brand in a fast growing industry, we regret to advise you of a decision which has been unanimously supported by all directors and authorised representatives of HFM & Partners to resign with effect immediately," the letter said.
HFM & Partners has given Axa 90 days notice of termination of its licence with the AMP-owned group.
"Our relationship goes back many years, so making a decision to leave was definitely not an easy one. To this end we would like to take this opportunity to say thank you for Axa's support and help over the years," the letter said.
Commenting on the move, HFM & Partners director Scott Haywood said: "We have a simple model and with the legislation heading where it is, we believe it's a move that's good for our clients, ourselves and the industry.
He said the decision has taken "significant thought", especially considering the "lucrative terms for us to remain in the Axa AMP network".
"It ultimately came down to which licensee do we believe will be able to assist us better as we head towards the FOFA [Future of Financial Advice]," he said.
"The Garvan model does not pay a volume bonus and is actually more expensive than Axa however their attitude and readiness for industry changes is what got them over the line."
