IBNA and Austbrokers are expected to formalise their alliance in the next two weeks.

IBNA Chairman Graham Watman says a few simple formalities remain before the parties can sign an agreement. This is the final step in a process that began in May last year when a heads of agreement was signed to discuss an alliance.

As reported by Sunrise Exchange News last week, a joint company – A & I Member Services (AIMS) – has been formed. It’s owned by IBNA and Austbrokers Holdings. Some IBNA-owned assets, like furniture and fittings, will be transferred to an Austbrokers company, as AIMS will share offices with Austbrokers in North Sydney.

Mr Watman says AIMS will have a joint marketing presence and will continue providing all the member services that IBNA provided. There will be additional benefits for IBNA brokers through the larger group’s efficiencies and economy of scale.

IBNA Broking will continue to operate under its own name but as a corporate authorised representative of an Austbrokers’ licensed entity.

Mr Watman says members of both groups are enthusiastic about the alliance, and there is no transfer of equity or loss of identity for IBNA.

AIMS will have a four-member board of directors, with Mr Watman and IBNA board member Marty Owen representing IBNA and Austbrokers represented by CEO Lach McKeough and company secretary Steve Rouvray.

A steering committee with two IBNA and two Austbrokers representatives will oversee the operational issues of AIMS. A general manager, who is yet to be appointed, will be on the committee.

A regional national representative committee representing all brokers will be elected by October, and joint standing committees for the groups are likely to be appointed soon after the GM is named.

Mr Watman says the benefits of AIMS are already flowing through.

“Renegotiation of the IBNA and Austbrokers professional indemnity package has seen an adjustment to common broker, common indemnity levels and common due dates, with higher indemnity levels at lower premiums.”

The alliance will establish joint training programs and regional and national conferences.