MICHAEL LEE-CHIN, president of the Berkshire Group of companies (Berkshire), and Tim Calibaba, President and Chairman, TWC Group of Companies Inc. (TWC) announced today that Berkshire has entered into a business agreement with TWC, subject to regulatory and shareholder approval, which will mean the merger of over 1,000 independent financial advisors and the administration of more than $10 billion in Canadian's investment savings.
Mr. Lee-Chin is chairman of the Canadian-based mutual funds company, AIC, of which the Berkshire Group is AIC's distribution arm. The majority stake in National Commercial Bank (NCB) was acquired by AIC last year.
SIGNIFICANT SHIFT OF POWER
This merger represents a significant shift of power to independent financial advisors across Canada as the investment industry has witnessed the consolidation of independent investment dealers, the reduction in the number of independent planning firms, and an increase in pressure on advisors to sell proprietary products, AIC stated in a release.
As financial advisors themselves, Michael Lee-Chin and Tim Calibaba have a vested interest in ensuring that the needs of independent financial advisors across Canada are being protected, the release stated.
"We were very nervous about the loss of advisor independence that seemed to be occurring throughout the industry," said Lee-Chin.
"As an advisor, maintaining your independence, and aligning yourself with a stable, respected firm, that is committed to the investment industry should be of utmost importance," Mr. Calibaba added.
Both Berkshire and TWC are committed to the independent planning community and this is evident in their new business agreement.
EXCITED
"We are very excited about this opportunity and the impact this will have on Canada's advisor community. We're changing the face of the financial planning industry" Mr. Lee-Chin said.
Both TWC and Berkshire provide a full range of investment and insurance products and services to the clients of their independent advisors.
"We have been diligently searching for the perfect partner over the last few months, and have turned down several offers that we weren't truly comfortable with," Mr. Calibaba said. "We believe that we have found our perfect partner and a natural fit for TWC with Berkshire."
Both TWC and Berkshire are committed to the independent advisor community, and to providing these advisors with the tools necessary to assist and guide their clients in wealth creation, Mr. Lee-Chin said.
