As a client of FinSec you will no doubt be aware of our beliefs around ‘open architecture’ particularly when it comes to product advice. In short; ‘for a recommendation to be in your best interest it must be chosen from a broad and comprehensive product list based on independent research’.
In Australia third party (independent) research is maintained and provided via five large research houses. Recently there has been a lot of press surrounding one of these houses, van Eyk.
Mid September van Eyk entered into voluntary administration, a result of an illiquid investment in its funds management division. At the time of putting pen to pixels the research business (established in 1989 and well regarded) continues to operate as normal.
Early this week we received confirmation that van Eyk’s research platform has been bought by Lonsec Fiscal holdings, an acquisition that “will enhance and evolve the delivery of research and portfolio construction tools” according to CEO Amanda Gillespie. The expected date of transition is in three weeks time.
Currently we have no reason to feel that their research capabilities are compromised and we (along with many others in the industry) continue to use and access these services as normal. We are monitoring the situation closely and once the sale is finalised will assess the implications accordingly. We will of course inform you regarding future intention and if/when any changes to our operating model occur.