News Round Up: April 10

What's a planning business worth? EUFA welcomes Bridgecorp judgment; New IT JV.

Tuesday, April 10th 2012, 6:56AM

A survey in Australia shows that most financial planners believe the average practice is worth between two and three times recurring revenue.

The survey, done by Radar Results, showed that just over one third of respondents selected 2 to 2.5 times recurring revenue, and a similar number opted for 2.5 to 3 times.

Radar Results principal John Birt says there has been a pick up, this year, in the number of planners looking to sell.

In terms of payment method, almost a third of respondents would prefer to pay half upfront, with the balance paid over two years, one quarter opted for an 80/20 payment over one year and one in five preferred a 60/40 payment over one year. Just 7% would pay the whole value upfront.

EUFA welcomes Bridgecorp judgment

A group representing aggrieved finance company directors has welcomed the Bridgecorp judgment.

"It's great comfort to see justice being served in the whole mess of the finance company scams - especially Bridgecorp which hurt so many. These finance company directors have a lot to answer for the pain and suffering they have handed down through their utter greed," EUFA founder Suzanne Edmonds said.

She says the guilty verdicts are "a victory, in part". "Getting money back is the ultimate victory for investors and while assets sit hidden investors will hold hope. (The) verdict gives investors power."

New IT JV

The New Zealand Association of Credit Unions (NZACU) has formed a joint venture with Finzsoft Solutions to form an IT infrastructure technology company providing services to NZACU and Finzsoft for the benefit of their New Zealand clients which includes credit unions, building societies and financial institutions.

NZACU provides its member firms with a range of business services including a core banking facility which collectively handles, by volume, the sixth largest amount of financial transactions in New Zealand.

In total is member credit unions and mutual building societies, representing more than 210,000 customers and assets of more than $1.2 billion.

NZACU chief executive Henry Lynch says the non-bank deposit taking sector continues to see high level of regulation, compliance and infrastructure costs. "This joint venture will enable our members to benefit from joint knowledge and back office scale that will help drive down costs, however with a high degree of quality compliance".

« Bridgecorp directors found guilty

Managers warn against more KiwiSaver regulation »

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