The strained relationship between BT Financial Group (BTFG) and Commonwealth Bank of Australia-owned dealer group Count Financial (Count) has re-ignited after it was revealed that Count sent letters to Securitor and Magnitude advisers.
Count chief executive David Lane told InvestorDaily the letters were sent after the company received phone calls from Securitor advisers with concerns surrounding large transition bonuses paid to former Count advisers who joined BTFG.
Count was told by existing Securitor advisers that they felt uncomfortable around the unequal outcomes, Lane said.
"We get calls all the time but it felt like in this situation there were enough calls to follow up with a specific letter," he said.
"It's an opportunity and we'll take advantage of it because it's there. We have a lot to offer and it goes with our overall growth strategy. Where there's smoke, there's fire."
In response to Count's actions, BTFG general manager advice Mark Spiers said the dealer group is sticking to its strategy.
"We are focused on growth in the market with aspirational and like-minded practices who want to keep a focus on great client outcomes, period," Spiers told InvestorDaily.
"I don't want to be in a tit-for-tat game."
The provision of advice goes beyond the focus of Count, as the highly dislocated and fragmented market is driving the need for practices to align with partners that are able to grow and support its clients, Spiers said.
"The reduction of this discussion around transition support belittles the critical role that planners play in the community and whilst Count continues to focus on the money, the practices are seeing well beyond any transition support," he said.
Lane said Count is focused on expanding the accountant-based financial advice business and will continue to do so in a number of ways.
"In the conversations we've had, a lot of what advisers are looking for is a really inclusive culture where people are treated fairly," he said.
Last month, Count announced it had added nine practices and 24 authorised representatives. It now has about 600 advisers operating out of 300 practices.
"The message is getting out there," Lane said, adding that advisers need to make the decision themselves as to whether Count is the right place for them.
Spiers said the focus on BTFG was unwarranted as it was not uncommon for practices to leave for other dealer groups.
"Our model is incredibly strong, our message is penetrating the market and it's natural that there would be people who are fearful of our success," Spiers said.
Earlier this week, BTFG announced its business-to-business BT Select proposition as its new pick'n'pay service for 120 handpicked firms, although its managing director Phil Butterworth said it would not be buying into those practices.
In late June, Lane told InvestorDaily that Count was continuing to revise its advice offering to fortify its advice and practice numbers.
"We've lost a few financial advisers and that's never a good thing," he said in answer to its advisers being poached by BTFG," Lane said.
Conflicts escalated between the two large dealer groups earlier this year after BTFG recruited five Count practices to its Magnitude brand.
