SMSF Trustee + Investor Expo
21st – 22nd June at the Melbourne Exhibition Centre
Prime are sponsoring the SMSF Trustee + Investor Expo 2019 which will be held at the Melbourne Convention & Exhibition Centre from Friday 21 – Saturday 22 June. If you or your clients are managing your own super, thinking of doing so, or simply a self-directed investor, this expo will be of great value. Therefore, we’d like to extend this opportunity for you/ your clients to attend this event complimentary.
To register, please click this registration button below and ensure the ‘change promo code’ on the right is set to ‘PRIME’ and continue the registration process.
Alternatively, if you have any issues, please email Tiffany Gray.
Prime group are finalists for the IMAP Awards 2019
The Institute of Managed Account Professionals (IMAP) has announced the finalists of the 2019 IMAP Managed Account Awards this week – with Prime being shortlisted as a finalist in two Managed Account categories Licensee Managed Account and Australian Fixed Interest.
“The managed account programs they offer are operated largely out of sight and the best are well resourced, carefully thought through, have a clear investment philosophy with decent track records and deserve to be recognised,” –Toby Potter, IMAP Chair.
Judged by a panel boasting some of Australia’s most experienced investment analysts and managers, they apply a strict matrix of criteria in identifying Australia’s best managed portfolio; among other important factors they examine the performance over one and three years as well as the risk measures that are in place.
The award winners will be announced on the 25th June.
Accountants Forum – Thank you
Thanks to all that participated at our Accountant’s Forum on 2nd May.
We really appreciated you taking a full day out of your schedules to come along and discuss some of the key issues you are facing in your firms.
The transparency and openness of the conversations really enabled some great outcomes and insights and we look forward to working through these over the coming months.
The collaboration between the groups worked really well so if you weren’t able to attend this time round, watch this space for when we announce our next forum date.
Success of MayDay Charity Event
Prime were proud once again to be a Platinum Sponsor for Mayday 2019. Congratulations to Cam Morcher and Jonathan Bayes plus the team @ The Corcous Club for putting on such a fantastic event and raising nearly $100,000 for SALT (Sports & Life Training). SALT is a not-for-profit health promotion organisation. Their vision is to transform Australian Culture through Sport. They deliver quality education, culture and leadership programs into local grass-roots sporting clubs.
Defining your retirement goals
Written by Xavier Craven, Partner – Wealth
I’ve spent the last few months introducing myself to existing clients of the business. A number of those clients appeared to be approaching retirement, but when confronted with the question ‘what does retirement looks like to you?’, the answers often are very opaque. These clients were not unusual, in that they spent their working lives raising and educating their children, paying off the mortgage and now saving for their ‘retirement’. But after years of working hard and now building a reasonable nest egg; what does retirement look like and how much is enough?
Preparing a budget might seem like the most basic of tasks, but it’s surprising how few of us have an up-to-date budget, yet alone an idea of what our ideal retirement looks like. Yet this information is the most crucial part of planning for your retirement. Without this information, it’s impossible to determine how much money you will need to retire, and therefore, how long you need to continue to work.
The complexity in creating retirement budget comes from the fact that there are a number of unknowns;
- Cost of inflation,
- How long will each of us live,
- Will we always have good health and what are the potential costs,
- Will we be able to live in the house forever or will we need to move into assisted living,
- Will we be able to choose our retirement date (semi-retirement) or will this be forced on us.
It’s not all bad news, we can help you to create your ‘ideal retirement’ budget. By starting with the known costs; living and household, motor vehicle running and upgrade, holiday and travel, other major expenses you would like to contribute for your children. Finally, we add in realistic, but generous allowance for the unknown expenses, some of which I mentioned already.
We also need to consider your intentions when it comes to your estate. For example, some never want to touch their capital, others want to leave the family home (or equivalent) to their children and for others, this isn’t a consideration.
In the last few months I’ve met with a number of clients who hadn’t previously done this exercise. In one case the client was well on their way to being able to meet their retirement goals and all things being equal, would reach them prior to being ready to leave the workforce. This gave them huge confidence that they were on the right track. In another case, the client discovered that they already had enough. I was able to say to them, that they are now working because they choose to. The client has no intention of retiring yet, but their relief was palpable.
We have a number of tools and vast experience in helping clients plan for and transition to retirement. Your adviser is uniquely placed to help you.
Financial Year End Planning
Written by Michelle Bromley CFP
As the end of financial year 2019 is upon us, our thoughts turn to making sure our clients have maximised their super contributions, met their pension payment minimums and optimised their tax positions before 30 June.
Below are some common strategies that you may wish to discuss with your adviser.
- Top Up Your Super Contributions
- Bring Forward Super Contributions
- Make a Spouse Contribution
- Get a Government Co-Contribution
- Lodge Your Deduction Notice
- Review Salary Sacrifice Arrangements
- Pre-Pay Expenses & Crystallise Losses
- Defer Income & Gains Until July
- Gather Your Receipts
- Meet Minimum Pension Standard
Maximising Super Contributions
If you’re under 65 or otherwise eligible to contribute to super, you should think about maximising your contributions. However, there are limits on how much you can contribute.
Generally, up to $25,000pa can be contributed from ‘before tax’ money (e.g. employer and salary sacrifice contributions) and provided you’ve got enough assessable income to offset, the ‘Concessional Cap’ includes personal contributions that you’ve claimed a tax deduction for too.
Any amount of personal contribution that you don’t or can’t claim as a tax deduction is counted against the $100,000 pa ‘Non-concessional Cap’. If you’re under 65 and have less than $1,600,000 in super, you might be able to bring-forward two future financial years’ worth of the Non-Concessional Cap to make a larger contribution of up to $300,000.
If you earn at least 10% of your income from employment, the Government may give you up to $500 as a Government co-contribution if you make a Non-concessional Contribution. You need to be less than 71 years old, earn less than $37,697 and make a $1,000 contribution to get the full $500.
Low income earners also get a break on the 15% tax applied to concessional contributions. The Government will apply a low income super tax offset of up to $500 to your super account if you earn less than $37,000 – so it might be worthwhile contributing extra and claiming a tax deduction.
If your spouse isn’t earning much, you might want to give their super a boost. If your spouse earns below $37,000 you can claim a spouse contributions tax offset of up to $540 when you contribute $3,000 to their super. They must be under age 65, but if they’re 57 or older they can’t be retired.
If you’ve made personal contributions that you intend claiming a tax deduction for, don’t forget to lodge your Notice of Intent to Claim a Deduction form with your super fund. You must get an acknowledgement letter back from your super fund before you lodge your tax return, or before the end of the financial year following the year in which you made the contribution (whichever comes first). Without the acknowledgement letter, you can’t claim the deduction.
How to fund contributions? Perhaps you have spare cash, or think about selling or in-specie transferring assets held in your own name (subject to capital gains tax considerations, see below.)
Bring Forward Expenses and Defer Income
If you think you might earn less next year, you would generally want to think about bringing forward tax deductible expenses and deferring assessable income.
Generally, you can pre-pay up to 12 months of expenses such as interest on an investment loan. This applies to deductible work-related expenses like insurance premiums for income protection policies too. If you’re planning on buying a new work-related tool (e.g. adding to your professional library or tools of trade) it’s immediately deductible if it costs less than $300.
If you’ve realised a capital gain during the year, you might want to consider bringing forward the disposal of an asset carrying a capital loss to offset capital gains. Just be careful not to get caught out in a ‘wash sale’ (where you sell shares to crystallise a loss and then buy them back shortly thereafter) as the ATO considers that a tax avoidance scheme and will cancel the benefit. The exception is if you in-specie transfer the shares into your self-managed super fund, as the primary motivation is providing for your retirement.
Deferring income can be problematic, but worth considering if you are certain that you’ll earn less next financial year. A standout strategy is where you are retiring, and you ask your employer to defer your retirement until an agreed date in July. Your Employment Termination Payment will be subject to tax at the lower marginal rates (that’s provided you won’t have any other sources of income next financial year) and if you’re 65 you have the opportunity to meet the 40 hours in 30 days ‘work test’ that ensures you’re eligible to contribute to super for the rest of that financial year.
While it’s generally too late to enter into a salary sacrifice arrangement for employment income earned in the current financial year, you should review your future arrangements for the coming 2019/2020 financial year to ensure they’re effective.
Ideally, you would be making sure that any salary sacrifice arrangements for extra concessional contributions to super weren’t going to result in you breaching the contribution caps and paying extra tax. You should also review those arrangements when you have a change in salary e.g. a salary review or on promotion.
Get your admin in order
SMSF Trustees, please ensure that you meet your minimum pension payment requirements. Please contact your accountant if you aren’t sure what amount to pay and contact your adviser now if you need help to arrange payment.
It’s a good idea to start gathering your paperwork, including those pesky little donation and incidental receipts, so you’re ready to meet your accountant early in the new financial year.
What to do?
Talk to your adviser ASAP if you think any of the strategies mentioned here might need further consideration in light of your personal circumstances.
The information in this article contains general advice and is provided by Primestock Securities Ltd AFSL No. 239180. That advice has been prepared without taking your personal objectives, financial situation or needs into account. Before acting on this general advice, you should consider the appropriateness of it having regard to your personal objectives, financial situation and needs. You should obtain and read the relevant Product Disclosure Statement (PDS) of any financial product discussed in this article before making any decision to acquire it. Please refer to our FSG (available here) for contact information and information about remuneration and associations with product issuers.
Practical Guidance – Accountants’ Certificates for Wholesale Clients
Written by Prime’s Compliance Consultants – Kit Legal Pty Ltd
Net asset test
In determining the net assets of an individual client for the purposes of the Individual Wealth Test:
- ‘Net assets’ is given its ordinary meaning, and the calculation of an individual ‘s net assets can include the value of illiquid assets (such as primary residence and superannuation monies);  and
- The net assets or gross income of a company or trust (including a SMSF) ‘controlled’ by the person may be included.
Control will arise where the person has the capacity to determine the outcome of decisions about the other entity’s (second entity) financial and operating procedures. The key considerations in determining whether a person has such a capacity will be:
- The practical influence the person can exert, rather than the rights it can enforce; and
- Any practice or pattern of behaviour affecting the second entity’s financial or operating procedures.
Individual SMSF trustees
In applying the above, as a general position, a person who is an individual trustee of a SMSF (where there are two or more trustees of that SMSF) would not alone satisfy the control test in relation to that SMSF as the person would not, separately from the other trustee(s), have the ability to determine the outcome of decisions about the SMSF’s financial and operating procedures. However, the trustees ‘control’ the SMSF as a collective group. This means that where the net assets of the SMSF are $2.5m or more, the trustees can be treated as one entity in determining that the person (trustee) to whom the financial services is provided, satisfies the Individual Wealth Test and is therefore a wholesale client.
Where the net assets of the SMSF are less than $2.5m, only the net assets or income that the individual trustees jointly own (in addition to the SMSF assets) can be counted towards the Individual Wealth Test.
Directors of a corporate SMSF trustee
Where the net assets of the SMSF are $2.5m or more:
- Any director who exercises sole practical control over the decisions of the SMSF (i.e. where there is only one member of the SMSF) would satisfy the Individual Wealth Test and is therefore a wholesale client. An Accountant’s Certificate can be given in this situation.
- Any two or more directors who practically control the decisions of the SMSF in a joint capacity (e.g. in a husband/wife situation) would satisfy the Individual Wealth Test and is therefore a wholesale client (but only in their joint names). An Accountant’s Certificate can only be given to the clients in their joint capacity (i.e. the Accountants Certificate cannot be addressed to one of the directors in their sole capacity).
Where the net assets of the SMSF are less than $2.5m, only the net assets or income that the controlling director(s) of the SMSF jointly own (in addition to the SMSF assets) can be counted towards the Individual Wealth Test. Please see the Structure Charts which set out common scenarios to explain this further.
In determining who controls different legal entities (such as trusts), care must be taken to identify appointors etc who may have control but may not be the trustee.
Under the Corporations Act, any financial service that relates to a superannuation product (or RSA product) is deemed to provided to the client as a ‘retail client’. However, if the client is the trustee of a superannuation fund (including a SMSF), approved deposit fund, pooled superannuation trust or a public sector superannuation scheme, with net assets of at least $10 million, they can be classed as a ‘wholesale client’.
There is some uncertainty as to when a financial service will be provided in relation to a superannuation product. It will largely depend on whether advice is being provided on superannuation matters (rather than investment of fund assets) and whether advice is being given to someone who is a trustee of the fund or a person in their capacity as a member of the fund.
Due to this uncertainty, in August 2014 ASIC issued a statement clarifying its position in applying the wholesale client test to a trustee of a SMSF (or other superannuation fund). ASIC has taken a no-action approach where a financial service is provided to a trustee of a SMSF (or other superannuation fund) which is advice about how to invest fund assets or assistance with a SMSF trustee subscribing for financial products on behalf of an existing SMSF and the provider has relied on the trustee satisfying the general wholesale client tests when determining whether the client is a wholesale or retail client. One such test is the client producing a certificate from a ‘qualified accountant’  that confirms that the client holds at least $2.5m in net assets or has had gross annual income for each of the last 2 financial years of at least $250,000 (Individual Wealth Test).
If you have any clients that fall in these guidelines, please speak with your relevant adviser.
 A ‘qualified accountant’ is generally any member of CPA Australia, CA ANZ, IPA or an “eligible foreign professional body” who holds a particular classification and complies with ongoing CPD requirements (as defined under ASIC Corporations (Qualified Accountant) Instrument 2016/786).  In 2011, the Government made suggestions around amending the net asset test to exclude illiquid assets such as a person’s primary residence and superannuation monies. There has been no further action taken in response to this suggestion.
Federal Election implications
Written by Jonathan Bayes, Chief Investment Officer and Managing Director – Wealth
Like most of the financial services industry, we breathed a major sigh of relief with the outcome of the Federal Election a fortnight back and the continuity it offered us and the client base.
Outside of construction, wealth and financial advice as an industry is probably the biggest beneficiary of a continued Coalition government and it does give us more reason to feel more optimistic on the 2020+ outlook for Australia’s economy.
The personal tax cuts will help wage growth and spur confidence as we get closer to the next cuts in 2022 and then 2024. Businesses have probably held off on some decisions during the first few months of the year and can now go ahead with some degree of certainty. Whilst we do feel better about Australia’s place in investment portfolio’s, the remainder of 2019 will likely prove difficult as the slowing construction and jobs market plays through and it takes time for the impending rate cuts to help confidence.
Whilst the Libs won we need to continue to highlight to clients the need to be diversified away from Australian franked income so as to generate a better medium term risk-adjusted return, and so we continue to make the point that though Labor did not win, their policies shed a light on the limitations and risks of a dedicated Australian franked income retirement strategy.
Global equity markets continued to climb higher as momentum drove the MSCI World Index up 3.5% in April.
The volatility that plagued equity markets in the December quarter appears to have abated somewhat despite no progress or resolution to the ongoing US/China trade war.
Although global bond yields rallied somewhat throughout the first half of April, they remain comfortably low. US 10 year Treasury yields rose to 2.50%.
The US was the notable outperformer in April rising 4% to all-time highs as stronger than anticipated economic growth gave investors further cause to buy the market.
The Australian equity market also rallied with the ASX200 Accumulation Index adding 2.4% in April.
Oil continues to bounce higher as the US demanded buyers of Iranian oil cease purchases by May or face sanctions. Both Brent and WTI rallied nearly 6% to $71 and $63/barrel respectively.
Iron ore continues to approach the $100/tonne level as supply side shocks from both Brazil and Australia were met with solid demand from China. Iron ore trades $96.50/tonne.
Contributors to performance in April were Afterpay (APT) + 22%, Amcor (AMC) + 4%, ANZ and WBC + 4.5% and 6%. APT trades well with both user and merchant subscription numbers in the US tracking nicely and the upcoming rollout of its UK business exciting the market. AMC announced a 16.8c dividend as it moves towards finalising its acquisition of Bemis whilst the banks were well bid ahead of their upcoming ex-dividend dates in the second week of May.
Detractors from performance were BWX (BWX) and Pendal (PDL) which fell -4.8% and -1.3%. BWX was weaker despite there being no news released in April. We await an update from management detailing whether a turnaround in its key Sukin branded products is occurring. In the case of PDL, April fund flows disappointed with a notable outflow in PDLs higher margin JO Hambro unit. Despite the headwinds facing Pendal, dividend income remains steady and PDL stock trades at a significant discount to its peers. We continue to hold the stock with a keen interest on the next set of FUM flows.
We were less active than normal in April with a Federal Election looming. However, we reduced our position size in NUF and established a new position in Boral (BLD) in the Growth SMA. The Diversified Income SMA exited its position in the Rare Infrastructure fund and used the proceeds to participate in the new Metrics IPO – the Income Opportunities Trust (MOT.) The Defensive SMA likewise participated in the MOT IPO whilst the International SMA sold down its MGG holding. On a risk profile performance basis our 5-year numbers continue to perform well against their respective benchmarks.
Risk Profile Portfolio Performance Figures as at 30 April 2019
Prime SMA – Model Portfolio Performance Figures as at 30 April 2019
Why we recommend regular trust deed upgrades
Written by Olivia Long, Managing Director – Strategy & Operations SMSF
Many SMSF Accountants and Auditors are inadvertently putting themselves at risk by not making the recommendation to their clients that a trust deed upgrade may be necessary.
Industry Specialists believe it is best practice to upgrade trust deeds every few years and this article will summarise why.
The Trust Deed of a Self Managed Superannuation Fund governs the operation of the Fund. Even if the Trustee of a SMSF is permitted under the Superannuation legislation to undertake particular actions, it is still generally not able to do so unless permitted by the Trust Deed.
Therefore, it is extremely important to ensure that the Trust Deed remains current and that the Trustee has the authority under the Trust Deed to act to the extent permitted by the legislation and be able to comply with any changes.
The ATO also makes it clear that the Trustee must regularly review and update the Fund’s Trust Deed in accordance with the law.
There are risks if your clients don’t keep their trust deeds up-to-date
There are numerous instances of when particular Trustee actions have not been permitted due to an outdated trust deed. Common examples include:
- Complying with the new Transfer Balance Cap requirements including:
- Internal rollbacks from pension to accumulation; and
- Eligibility for additional time to restructure death benefits for a recipient to comply;
- Allowing for CGT relief;
- The mechanics for a Trustee to act when a member reaches the Total Super Balance Cap which prevents any further Non-Concessional Contributions to be made by that Member;
- Adding people (e.g. Spouses and Children) as Members when not permitted under the Trust Deed;
- Commencing (or converting to) Pensions of a type not in existence at the commencement of the Trust Deed;
- Ceasing Pensions when ‘internal rollback’ is not permitted;
- Commencing Transition to Retirement Income Streams when the Trust Deed stipulates the earliest date for receiving benefits is age 65;
- Entering into a SMSF Borrowing arrangement without the required authorities under the Trust Deed;
- Allowing Members to complete non-lapsing Binding Death Benefit Nominations when either:
- Not provided for under the Trust Deed; or
- Limited in the Trust Deed to lapse after 3 years;
- Accepting Contributions from Members of an amount or type not permitted under the Trust Deed;
- Rejecting or refunding contributions and dealing with excess transfer balance tax, excess contributions, and release authorities;
- Calculating a member’s total balance;
- Contribution splitting when not authorised under the Trust Deed;
- Acting in accordance with Judicial Orders (e.g. Family Court) when not empowered to do so; and
- Continuing the Fund although the Deed stipulated a wind up because of ‘trigger events’ contained in the Trust Deed.
Some instances where the Trustee may inadvertently act on out-dated powers contained in an old Trust Deed where powers have been removed by legislative change include:
- Allowing a Member to remain in the Fund past age 65, when the Trust Deed requires their Benefits to be paid out;
- Using out-of-date standards for the in-house assets test;
- Paying a reversionary pension, on the death of a Member, to an adult child;
- Commencing a Pension of a type no longer permitted;
- A requirement that a Total and Permanent Disability benefit be paid if the Member meets the ‘own occupation’ definition rather than the ‘any occupation’ definition for a Condition of Release to be met; and
- A requirement that a Temporary Disability benefit be paid from the total of the Member’s balance in the Fund.
If the Trustees were to undertake such actions without the authority of the Trust Deed they could risk:
- Audit exceptions because of invalid powers (breach of trust) that could lead to ATO investigations and sanctions;
- Loss of tax benefits – for example if they attempt to commence a particular pension without the power in the deed;
- The wrong beneficiaries receiving Death Benefits because of invalid documentation (eg BDBNs being deemed invalid etc);
- If a member or trustee endures a loss as a result of a contravention through not updating the Trust Deed super law provides they may make a claim against others involved which could leave their professional adviser at risk.
How to determine which client trust deeds need updating
Pre 2007 Deeds
Generally speaking, any SMSF Deed prepared before 2007 needs to be amended to bring it into line with the raft of changes that occurred in the Simpler Super reforms.
Post 2007 Deeds
This is more difficult to quantify broadly, however there have been a myriad of legislative instruments, tax determinations, court cases, tax office rulings and legislative changes during this period. Recent trust deeds have been enhanced with many additional innovations that could benefit the members of your Fund, including the ability to:
- Initiate Automatic Reversionary Pensions;
- Complete multi-layered Binding Death Benefit Nominations, which do not lapse;
- Appoint an additional layer of oversight to ensure the correct disbursement of their benefits, in the form of a ‘Member Benefits Guardian’;
- Hold Property for a particular member in a manner that assists with stamp duty exemptions in various states;
- Accept certain overseas pension transfers.
We can run your trust deed upgrade project for you
If you know you need to act but not sure how to approach it, we can assist you by running your trust deed upgrade project for you.
If you’d like to find out more feel free to contact me:
After a marathon 19 years as an integral member of the Prime team, Danny has decided to retire from the advice industry effective 30 June. Danny is looking forward to enjoying semi-retirement where he will do some casual work within a family business in Cairns.
Our great thanks goes to Danny for his massive contribution from the inception of Prime.
We wish Danny the best and hope he thoroughly enjoys his semi-retirement, spending more time with his family and everything that Far North Queensland has to offer!
We are currently working with Danny to ensure a seamless transition with his existing work in progress to relevant advisers.
Going forward, for all future referrals please contact your Primary Adviser.
Should you have any queries, please don’t hesitate to speak with Simon or Angelina.
Research & Development tax incentive
Written by Brendan Brown, Partner – Accounting & Business Advisory
Overseas R&D Activities
If you have conducted R&D activities overseas during this 2017-2018 financial year you must lodge an application by 30 June to have your overseas activities approved.
Claims for R&D activities undertaken overseas must be registered and approved by AusIndustry’s Innovation Board, resulting is an ‘Overseas Finding’. Specific criteria are required to be met in order to claim costs incurred on overseas activities.
If you are considering lodging an Overseas Finding Application this financial year or, unsure whether your overseas activities meet the criteria, Prime are available to help take care of all the details and submit a compliant finding application however this must happen prior to 30 June. So please contact us now.
Payments to Associates
In addition, payments to associates need to be made by 30 June.
Associates may include shareholders of the company, company directors, and related legal entities such as Trusts. If amounts incurred to associates are not paid prior to 30 June they can be either:
- Carried forward and claimed as a notional R&D deduction (and subject to the R&D tax incentive) in a future year when paid; or
- The amount incurred can just be claimed as an income tax deduction under the normal tax provisions in the year they are incurred, and the R&D tax incentive forgone.
The Prime R&D specialists can advise you regarding the application of the associate rules to your specific circumstances, however we need to act quickly.
If you plan to engage contractors to provide R&D services that will be completed in the next 12 months, ensure that you have received the invoice or signed contract prior to June 30.
Recording this as an accounts payable or accrued expense before the end of the financial year allows you to maximise the claimable expenses for the financial year.
For any enquiries or support:
FY19 Tax Reports Webinar Registration
To assist you in preparing FY19 tax compliance documents for your clients, we are hosting a brief webinar where a Macquarie Group representative will provide step-by-step instructions and guide you through accessing tax reports via these platforms.
Thursday 13th June, 10.30am to 11am
Within the Calendar invite you will find the webinar login details.
We look forward to seeing you on the 13th June!
For any enquiries or support:
Wrap Tax Website – tools to support you
The Macquarie Wrap Tax website is a public site available for advisers, clients, administrators and accountants that provides:
- Assistance with the release and interpretation of tax reports
- Status updates on reports
- Resources and guides
- Technical information
Prime Capital Advisory’s Strategy
Written by Roger Cameron
The mantra of the Capital Division is simple… to do good deals with good people. In practice what this translates to, is selecting the clients and deals we can add value to and to bring together a team of the best service providers to guide and support clients through a transaction process. There were several driving rationales behind the establishment of the Capital Division, two of these were to provide a differentiated, integrated, client centric advisory offering and to grow, develop and support the evolving Prime ecosystem.
Corporate Advisory the Prime way
When the Capital Division is engaged to act on a deal, we seek to use the skills and expertise of existing service providers (largely accountants and wealth managers) because we recognise there is a huge benefit in leveraging their experience and knowledge of the client. This means that the accountants/advisors become a crucial part of the team, providing the technical capability and long-term advice that we require to ensure the client achieves the best possible outcome. Typical within the Australian mid-market, corporate advisory services are provided with minimal engagement and involvement of existing service providers, we see this as sub-optimal and not in the interests of the client, so we seek to do this differently by working side-by-side. For the accounting firms this means that they continue to maintain the relationship with the client and typically experience a significant increase in work through a transaction process.
Developing the Prime ecosystem
Within the Prime ecosystem of accounting partners and JV firms there are a significant number of privately held businesses that at some point would benefit from the skills, knowledge and expertise of the Capital Division’s advisers. In part, we have built the Capital Division to help service these businesses. When we work with a client within the ecosystem we ensure that the relationships and workflows are captured internally and that each part of the business(es) gains exposure to the potential benefits from our work. For example, if a business is introduced from a JV partner, we would see the JV partner working hand-in-hand with us on a transaction and then when the proceeds of a transaction are realised the wealth division would help to manage the proceeds (or a portion thereof), developing long term value creation for all parties involved.
For any enquiries:
Disclaimer: This information on this page contains general advice and is been prepared by Primestock Securities Limited ABN 67 089 676 068, AFSL 239180 (‘Prime’) . Prime accepts no obligation to correct or update the information or opinions in it. This information does not take into account your objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate to your situation. It is recommended that you obtain financial, legal and taxation advice before making any financial investment decision. You should obtain and read the relevant Product Disclosure Statement (PDS) of any financial product discussed in any articles mentioned before making any decision to acquire it. Prime is bound by the Australian Privacy Principles for the handling of personal information.