A number of Genesys Wealth Advisers member firms have joined BT Select, with more than 20 financial advisers leaving the AMP network despite lucrative offers to stay.
An investigation by InvestorDaily sister title ifa revealed that at least 20 advisers formerly aligned to AMP have moved across to rival institution BT Financial Group in recent weeks, following the decision to close the Genesys dealer group.
South Australia-based firm Halpin Financial Services has moved its eight practitioner advisers across to Westpac’s Magnitude licence, including a number of firm directors, as has multi-office firm Zest Wealth and fellow former Genesys firm Wealth Plus Solutions.
BT general manager, group licensees, Phil Butterworth said the mass recruitment comes off the back of strong growth figures over the past three years, with BT Select now encompassing 220 advisers across 70 practices.
“We are very pleased to have this calibre of advisers and practices joining BT Select,” Mr Butterworth said. “BT Select continues to attract like-minded practices that are looking to grow while having access to the resources of an organisation such as BT Financial Group.”
A number of sources close to the matter have suggested – on condition of anonymity – that the practices were incentivised via lucrative sign-on payments “mirroring AMP’s lucrative offer” of three times margin, with one firm allegedly receiving a payment upwards of $1 million.
The alleged payments allowed the former member firms to extricate themselves from equity stakes held by AMP under the ‘Genesys Gem’ model implemented in a majority of Genesys practices.
However, BT has rejected the allegation, with a spokesperson telling InvestorDailythe figures quoted are “simply untrue”.
At least some of the practices are long-time users of the Solar BT white-label platform, with one incoming recruit saying use of the platform was a “sticking point” in disputes with previous parent company AMP.