Total Financial Solutions to shutter next year

CountPlus has announced an early 2020 end date for the Total Financial Solutions (TFS) dealer group.

The plan was confirmed today at CountPlus' annual general meeting.

TFS currently has around 81 financial advisers on staff, with CountPlus saying 62 have been invited to join subsidiary Count Financial, four have decided to exit the industry and eight have not been offered a position elsewhere in the business.

"We are pleased to provide a solution for TFS advisers and their clients moving across to Count Financial. Our priority is a smooth and safe transition for our advisers, who have been loyal stakeholders for many years," CountPlus chief executive Matthew Rowe told Financial Standard.

Of those not offered a position elsewhere, CountPlus said: "Three TFS firms (eight authorised representatives) have not been offered the opportunity to join Count Financial and we are working respectfully with these firms to assist them join another AFSL."

The average gross business earnings of the mentioned firms are $763,000.

"TFS has undertaken its own transformation in recent years.  It has a strong sense of community and has moved to the "new world" of advice and away from conflicted remuneration models," Rowe said.

"It has not been easy, but the TFS advisers have knowingly made changes to their business models and through their resilience are better for it."

CountPlus warned there would be synergies as a result of this decision, which the parent company originally announced in June this year.

"We believe we are best served by focusing management resources on a single operating AFSL and we believe this decision also reduces operating risk," Rowe said.

"We have decided that in focusing on our core, the combination of CountPlus, Count Financial and a network of engaged and motivated firms will create more value that the parties could create on their own."

CountPlus added Count Financial to its business earlier this year in a $2.5 million acquisition.

At the time, Rowe said the objective was to make CountPlus the leading network of professional accounting and advice firms in Australia and launched a 100-day plant to integrate the Count Financial business.

CountPlus reassured stake holders that at present TFS have no known outstanding regulatory matters, but did flag that there is currently one client remediation matter under investigation but said it is unlikely this will result in compensation being paid.

Read more: CountPlusCount FinancialTotal Financial SolutionsMatthew Rowe
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