ASB Securities looks to discontinue advisory service

Friday 11th June 2010

ASB Securities is looking to discontinue its client advisory service and is undergoing a consultation period with six staff affected by the proposed change.

ASB chief executive relationship banking Stewart McRobie says in a letter to clients that ASB has recently undertaken a strategic review of its wealth businesses and as a result it is proposing to limit the range of services it offers to its customers.

"If the ASB Securities client advisory service is discontinued we will still be offering advice on a limited range of top quality listed Australian and New Zealand equities and other investment securities. This advice would be supported by in-house research."

ASB Securities managing director John McMahon would not comment on why the proposed change is being looked at, but said the consultation process started earlier this week.

It appears profiles of some ASB Securities advisers have been removed from the website. Consultation is understood to last around six weeks.

"This has no reflection on the advisers or the profitability of business," he says.

ASB Securities clients have been told in a letter that their current investment portfolio, together with their existing security holdings, are not affected by the proposed change.

It says ASB Securities will continue to offer equity trading, fixed interest trading and its margin lending service through its telephone and internet broking teams.

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