- Yellow Brick Road (YBR) has entered a $2.5 million sale agreement and strategic alliance with Sequoia Financial Group (SEQ)
- Sequoia’s subsidiary, InterPrac Financial Planning, will purchase YBR’s wealth division
- This is part of Yellow Brick Road’s pivot away from wealth management towards the mortgage market
- Yellow Brick Road and Sequoia will act as each others’ preferred referral partner for wealth and mortgage related advice and services
- Yellow Brick Road rose 1.14 per cent, to be worth 8.9 cents apiece at market close
- Sequoia closed 4.65 per cent higher, at 22.5 cents apiece
Yellow Brick Road (YBR) has entered a sale agreement and strategic alliance with Sequoia Financial Group (SEQ).
The agreement will see Sequoia’s subsidiary InterPrac Financial Planning purchase YBR’s share of the rights to the recurring revenue streams from its wealth advice and life insurance distribution businesses.
YBR’s current wealth advisers will become advisers of InterPrac which holds an Australian Financial Services Licences within the Sequoia Group.
The price for the transaction will be $2.5 million if all of Yellow Brick Road’s advisors chose to transfer.
YBR Executive Chairman Mark Bouris explains the transaction is part of the company’s pivot away from wealth management.
“The decision to exit the management of YBR’s wealth business was driven by YBR’s recent strategic pivot away from wealth management, in which it lacked scale in an increasingly regulated environment, to focus on the mortgage market,” Mark commented.
“YBR is 100 per cent focused on its mortgage business and is committed to the implementation of its mortgage securitisation initiative,” he added.
A cross-referral agreement provides for Sequoia Group to act as the preferred referral partner of wealth advice and services for YBR mortgage broking network.
Conversely, YBR will be the preferred referral partner of mortgage advice and services to the Sequoia Group.
Yellow Brick Road rose 1.14 per cent, to be worth 8.9 cents apiece at market close
Sequoia closed 4.65 per cent higher, at 22.5 cents apiece