Financial advice firm gets diversified

Diversified Investment Strategies has split with one director taking her clients to Fisher Funds, leaving the other behind.

Friday, August 1st 2014, 7:07AM

Diversified Funds are closing after one of its two principals decided to move across to Fisher Funds Management.The change has come about partly because Diversified had earlier decided to close the Law Retirement KiwiSaver Funds that it managed.

Good Returns understands the Financial Markets Authority put pressure on Diversified over the scheme’s closure and “suggested” it talk to Fisher about taking over its KiwiSaver funds, otherwise members would be allocated to default providers.

Fisher was suggested as it had scale and also has experience acquiring schemes.

Diversified director Norman Stacey says having members allocated to default providers wasn’t in the best interests of investors so it approached Fisher.

The transfer has yet to be approved by FMA, but that is expected soon.

During this process Diversified’s other principal, Vicky Watson, agreed to join Fisher and will be taking Diversified private clients with her.

Stacey will continue to advise a small number of clients independently on their individual portfolios, and pursue other interests.

Fisher Funds chief executive Carmel Fisher says Watson will be “an adviser in our adviser team.”

Fisher says the firm has “three or four AFAs” and gives advice to its 250,000 investors when they need it.

She says not all of Fisher’s investor are at a stage where they need advice.

Fisher says Watson will “advise her clients” and others who want advice.

Stacey says a unitholder meeting was held this week where investor agreed that the Diversified Wealth Management Balanced Fund, and Diversified Wealth Management Dynamic Funds would be closed.

Unitholders will be transferred into replacement funds offered by Fisher Funds.

He said this approach had to be taken otherwise some investors would be disadvantaged if they withdrew and went to Fisher with Watson.

He says the trustee will hold proceeds from Diversified’s PIE Funds owned by The Law Retirement Plan Superannuation Scheme, until directed to transfer those assets in accordance with procedures agreed with the Financial Markets Authority, or until the Scheme is wound up.

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