Challenger goes broking

Financial services company, Challenger New Zealand is planning to establish a retail sharebroking arm in New Zealand.

Challenger chief executive John Rowley says the move is logical following the February purchase of the retail operation of Credit Suisse First Boston (CSFB) in Australia by Challenger's parent company.

It has now established Challenger First Pacific, a full service sharebroking subsidiary. The New Zealand operation will also be known as Challenger First Pacific and will offer a full range of financial services.

It will become a member of the New Zealand Stock Exchange.

The new company will tap into the resources of Australian subsidiary, sharing global research provided by CSFB as well access material compiled in New Zealand.

Challenger New Zealand is actively looking for interested sharebrokers wanting to join. It hopes to have the new company up and running by July and is planning to have a team nationwide.

"We're offering what we believe is the most attractive commission structure in the market, which will encourage investment advisor loyalty to customers and proactive service," Rowley says.

The move reflects the company's overall philosophy, Rowley says.

"We would like to offer our financial advisor clients an independent but globally-based broking platform alongside our range of innovative products."

Rowley describes the move as "the next logical step" for Challenger.

"I strongly believe there is room here for a locally-based financial services offer," he says.