Lifetime to buy Swains

After 42 years as a financial adviser Ken Swain is handing the reins of Swain Financial Services in Invercargill and Queenstown over to Lifetime Financial Security NZ.

Tuesday, December 15th 2009, 5:09AM

by Jenha White

Swain says Lifetime initially approached him a year ago to buy Swain Financial Services but he declined its offer at that stage because he was not considering selling.

However some health issues manifested in July and led Swain to believe it was time to seriously consider selling the business.

"I had achieved all my major goals within the industry after 42 years but there was still reluctance to let go of the reins.

"In the end I felt the time for me to sell the business was right with regulation and legislation looming."

He says he chose Lifetime from about four prospective buyers because it has similar systems, processes and ethical standards and because it has no committed percentages of its business to any single provider.

Lifetime Financial Security NZ chief executive Warren Stephens says Lifetime was very keen to round out its South Island footprint, having offices already in Nelson, Blenheim, Rangiora, three in Christchurch, Timaru and Dunedin.

"Swain Financial Services appeared to logically fit and after meeting with Ken in 2008 we very quickly confirmed that our mutual key drivers and principals were aligned."

He says the purchase should be pretty seamless, as Lifetime has invested extensively in its back office systems and procedures.

"From the get go after the initial training and familiarisation is rolled out things should quickly settle into normality.

"By retaining key experienced staff that already understand the industry we are able to provide a lot of continuity for the business and clients."

Stephens says the structure under Lifetime and the support it provides advisers is totally different to how Swain Financial Services was structured.

"We anticipate maintaining a similar number of full time equivalents, however the positioning of these will be more streamlined with our current staffing support policy. All accounting functions will move to head office in Christchurch."

While the deal rounds out Lifetime's South Island aspirations it is still interested in buyig other advisory firms.

"We are still very keen to open discussions with other businesses in the South and consolidate on our strong base, however there is also a huge commitment to our establishment in the North Island from 2010 onwards with a number of advanced discussions already underway."

Jenha is a TPL staff reporter. jenha@tarawera.co.nz

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