Kepa not keeping regional roles

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[UPDATED] Dealer group Kepa is disestablishing positions amid allegations that it is suffering a lack of revenue growth.

Thursday, March 17th 2016, 7:30AM 5 Comments

Rick Irvine

South Island key account manager Rick Irvine and central region key account manager Rochelle Hill have been made redundant because their roles have been disestablished. Members were advised at the beginning of March.

Irvine then later sent an email to Kepa members, which he called "clarification of Kepa advisement" telling them that during the consultation process, Kepa had said the decision was made because the group's revenue had not increased and the group was not achieving its profitability targets.

It was not because of performance concerns or anything specific to Irvine or Hill.

He said the decision was made to restructure Kepa's distribution model with the view of reducing costs.

It is creating three new roles, of which two are administrative.

Irvine said he and Hill had been invited to apply for the roles but it seemed unlikely that there would be a position available outside Auckland.

Irvine said: "I wish to take this opportunity to thank each and every one of you [advisers] for your support and assistance over the past 18 months. I have built some fantastic relationships, made some great friends, and had an absolute blast working with you all, and seeing businesses and people grow, evolve and become more successful. I will truly miss being a part of your future growth and successes."

Kepa chief executive Jeff Page did not want to comment but rejected the allegation that there were profit problems. He said resources were being reallocated in a more efficient way.

Kepa was the result of the merger of TNP and Ginger Group.

Page has been promoting the idea that dealer groups could attain a QFE-type status under a review of the Financial Advisers Act.

Nicola and Kevin Smee cut ties with Kepa last year, taking their Solutions team of advisers with them.

Industry insiders said Kepa had been attempting to move to a more "corporatised" model amid suggestions that dealer groups were becoming a less relevant proposition for advisers. 

Tags: Kepa

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