Rather, the financial services licensee said it still believes the convergence of financial advisors and accountants will continue, and it remains open to future tuck-in transactions or a possible revised merger with WHK Group.
The comments came as SFGA announced its decision, in a statement to the Australian Securities Exchange (ASX) yesterday, to withdraw its proposal to merge with WHK Group.
The statement said the proposal has been withdrawn following discussions between the leadership of both companies, adding that they have agreed to consider a revised proposal "once the parties are in a position to review each other's full year FY13 performance and FY14 outlook”.
It also reiterated that an SFGA-WHK merger would be “uniquely positioned” to take advantage of the industry convergence.
“SFGA will remain focused on its strategy of building a business around quality financial advisors and accountants, as illustrated through the acquisition of Lachlan Partners,” the statement said.
In an earlier statement to the ASX in February, SFGA listed industry convergence as one of the top factors in the strategic thinking behind the $32.2 million acquisition, which added 55 advisers and accountants and approximately $606 million in funds under advice to the group.
“SFGA’s core strategic rationale underlying the Lachlan Partners merger is that it believes that the service required of financial advisers and accountants are converging,” said the statement, authorised by managing director Tony Fenning.
“It is SFGA’s view that [high-net worth] and private company clients are demanding a more integrated service offering that covers their accounting and tax requirements, while also effectively managing their cash flows and getting the right structure and advice when it comes to accumulating wealth, planning for their retirement and managing their estate,” the group stated.
