Staff to majority-own Wilson HTM spin-off

THE stockbroking arm of Wilson HTM Group will be ­majority-owned by staff under a plan outlined by the listed financial services group.

THE stockbroking arm of Wilson HTM Group will be ­majority-owned by staff under a plan outlined by the listed financial services group.

The funds management ­business of the 119-year-old ­Queensland-based firm will remain listed on the Australian Stock Exchange, while a stand-alone securities business will be spun off under the leadership of acting chief executive Brad Gale.

Mr Gale will head a partnership team that also includes head of institutional equities Richard Moulder, head of private wealth Paul Bryant, and chief operating officer James Davies.

Wilson HTM managing ­director Sandy Grant will oversee the transition of the new ­securities business, while continuing to lead the funds management business.

“A securities business that’s largely owned by staff is the most successful model for the industry,” Mr Grant said. “There’s a pride of ownership that comes with that structure. The Pinnacle Investment Management business is run in a boutique structure and that’s something that works well in the financial ­services sector.”

The move comes at a tough time for full-service retail stockbrokers, which have seen their business eroded from the rise of online brokers. A string of mid-tier brokers from Patersons ­Securities, Bell Financial and BBY have each posted a loss for the past financial year. The decision by Wilson to spin off the securities business follows reports in August it held talks with Shaw Stockbroking about a potential pact. Those talks concluded in early last month.

“For some time we have been trying in various ways to create a more easily understood group that is more accountable for its successes, and if investors have the opportunity to better understand it, I guess they are better able to value it,” Mr Grant said.

Wilson HTM shares responded positively yesterday, rising 10c to close at 75c.

As for the broader stockbroking industry in Australia, Mr Grant said it was a “widely contested market” and industry consolidation was likely.