Centrepoint Alliance locks in hundreds of Brighter Super advice clients

Centrepoint Alliance, which entered into an agreement to acquire the advice book of Brighter Super, has confirmed that most eligible members opted to stay in the transition.

Centrepoint Alliance snaped up the comprehensive advice book of ESI Financial Services, a wholly owned subsidiary of Brighter Super, last month. Its advice business subsidiary, Financial Advice Matters, is now responsible for servicing most of these members.

Brighter Super, which has over 280,000 members, selected Financial Advice Matters to provide advice services for members requiring "more complex, personalised support."

Brighter Super members eligible to transition had until May 16 to opt out.

Out of the 400 eligible members, 316 - who have fixed-term contracts due for review over the next year - have confirmed they will transition to Financial Advice Matters.

An additional 30 members are undergoing reviews and signing new agreements.

Centrepoint said Brighter Super has until June 11 to complete its audit and provide final client counts and associated figures, which will determine the final settlement amount, which is calculated based on a multiple of 1.25 times revenue transitioned, on June 13.

It said a final announcement on June 17 will confirm client counts, associated fees, and the total amount paid for the acquisition.

As Centrepoint finalised its acquisition timetable, Australian Wealth Advisors Group became a substantial holder with a 15.1% stake, holding over 30 million shares.

On the same day, COG Financial Services completely exited its position in Centrepoint, offloading just under 40 million shares - 19.99% of the company's issued capital.