Finsia sale in doubt
Industry practitioners are leading a backlash against the $36 million sale of the Financial Services Institute of Australia (Finsia) education wing, claiming the sale is premature and lacks due diligence.
US training group Kaplan has offered to purchase Finsia’s educational arm, with the deal depending on membership approval by June 14. Finsia requires a simple majority of its 20,000 members to support the sale.
A group of members, led by Principal Global Investors Director Giles Gunesekera, is seeking to junk the deal, because they believe Finsia has not maximised its potential after merging in 2005 and has not conducted the necessary due diligence.
The group is not opposed to the deal as such – or the higher offer of $42 million in cash and advertising contra from Fairfax – but believes abandoning the practitioner model is contrary to how the market is evolving.
Finsia announced in April it is selling its education business, and President Michael Shepherd said the group wants to shift resources to member services.
Chairman Michael Shepherd said he expects some of Finsia’s 400 practitioners will be concerned about the sale. “The senior executive and board of Finsia, including me as chairman, are talking to as many members as possible and invite any member – including Mr Gunesekera – with any concerns to talk to us.
“Finsia’s board formed the view that the large amount of capital and resources required to maintain accreditation, and develop and market new courses in financial services education in Australia would be better applied to providing a wider range of services to its members and representing them in matters of policy and public interest.”
Despite reported concerns about the sale going ahead – aired mainly in Fairfax-owned media outlets – Finsia is confident the deal will be approved by members. It’s also believed Finsia won’t contemplate a sale to Fairfax should the sale to Kaplan fall through.
Finsia has already rejected Fairfax’s deal as too conditional and lacking detail. The company wants to sell the business to an experienced education provider.
A Finsia spokesman also rejected claims by Mr Gunesekera that Kaplan is planning to abandon the practitioner model.
US training group Kaplan has offered to purchase Finsia’s educational arm, with the deal depending on membership approval by June 14. Finsia requires a simple majority of its 20,000 members to support the sale.
A group of members, led by Principal Global Investors Director Giles Gunesekera, is seeking to junk the deal, because they believe Finsia has not maximised its potential after merging in 2005 and has not conducted the necessary due diligence.
The group is not opposed to the deal as such – or the higher offer of $42 million in cash and advertising contra from Fairfax – but believes abandoning the practitioner model is contrary to how the market is evolving.
Finsia announced in April it is selling its education business, and President Michael Shepherd said the group wants to shift resources to member services.
Chairman Michael Shepherd said he expects some of Finsia’s 400 practitioners will be concerned about the sale. “The senior executive and board of Finsia, including me as chairman, are talking to as many members as possible and invite any member – including Mr Gunesekera – with any concerns to talk to us.
“Finsia’s board formed the view that the large amount of capital and resources required to maintain accreditation, and develop and market new courses in financial services education in Australia would be better applied to providing a wider range of services to its members and representing them in matters of policy and public interest.”
Despite reported concerns about the sale going ahead – aired mainly in Fairfax-owned media outlets – Finsia is confident the deal will be approved by members. It’s also believed Finsia won’t contemplate a sale to Fairfax should the sale to Kaplan fall through.
Finsia has already rejected Fairfax’s deal as too conditional and lacking detail. The company wants to sell the business to an experienced education provider.
A Finsia spokesman also rejected claims by Mr Gunesekera that Kaplan is planning to abandon the practitioner model.