It was announced that Kepa’s mortgage business will merge with NZFSG. The takeover will see Kepa members being integrated into the NZFSG-Loan Market dealer network. Members offering general insurance advice will remain in Kepa. Kepa advisers will have the option of moving to NZFSG's MyCRM system and Kepa employees will be transferring.
“The nation's biggest broker group, NZFSG has effectively completed a takeover deal. Kepa's mortgage business will become part of its larger rival, marking the latest phase in industry consolidation.
The two groups have been in talks for several months, TMM Online understands.
Kepa’s members will be integrated within the NZFSG-Loan Market dealer network. Kepa advisers will be given the option to move onto NZFSG's MyCRM system, while Kepa’s staff will transfer to the merged business.
Both Kepa and NZFSG have said the merge will assist in better navigating the new regime and would create a national dealer group with over 1,600 members.
“Both parties believe the additional scale will help under the new financial advisers' regulatory regime, which will place greater demands on groups acting as Financial Advice Providers for their members.
In a statement, the two groups said the deal would create a national dealer business with more than 1,600 members, settling more than $17 billion of mortgages and issuing $30 million of life insurance premiums each year.”
Congratulations to NZFSG-Loan Market and Kepa, on the successful conclusion of this deal. These take an enormous amount of work sustained over a considerable period of time. We wish them all the best in working through the coming year - which is shaping up to be a very busy one for everyone involved in the provision of financial advice due to the implementation of the new regime.
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