Rabobank Australia & New Zealand has announced a new long-term arrangement for its financial planning subsidiary, Rabo Financial Advisors (RFA). Under the arrangement, Hillross Financial Services (Hillross) has agreed to acquire RFA and will be Rabobank’s exclusive provider of financial planning services.

The RFA business will remain fully intact and will be incorporated into Hillross’ operations and transition to the Hillross brand.

RFA was originally established in 2001 to provide specialist financial advisory services to Rabobank’s clients and the wider rural market.

Announcing the new arrangement, Rabobank Australia & New Zealand group executive, Country Banking Neil Dobbin said Hillross’ scale and its depth of expertise, products and services would benefit the bank’s clients. This would ultimately extend the financial planning services Rabobank can offer its clients.

"This arrangement not only enables a seamless continuation of service to existing RFA clients, it also allows Rabobank to provide additional financial planning services and expertise, and a greater range of products to our clients in the future," he said.

Mr Dobbin said Hillross had a strong cultural fit with Rabobank and a similar boutique, service-oriented model to the RFA business, focussed on providing high quality advice to clients and a broad range of products and investments.

"For RFA employees, this arrangement provides a stable transition environment and also career opportunities that come with being part of a network with a focus and scale in financial planning," he said.

RFA operates from nine locations throughout New South Wales, Queensland and Western Australia, servicing rural, regional and city-based clients. It employs 40 staff, including 17 advisers.

Hillross has more than 310 skilled and experienced wealth management advisers working in more than 100 advisory firms across Australia. Hillross is wholly owned by AMP Limited and has its own mandate to deliver professional services for the client. Its relationship with AMP ensures the backing of one of Australia’s largest wealth management businesses, with over 160 years of history.

Mr Dobbin said the opportunity to enter into the sale arrangement with Hillross had been taken by Rabobank following a strategic review of how to best service the future financial planning needs of its clients.

"A number of businesses were reviewed, however Hillross was easily the best fit in terms of like-minded people and culture. The depth and expertise of service was also the best the market could offer," he said.

Hillross managing director John McMurdo said Hillross looked forward to the opportunity to grow the Rabo Financial Advisors business throughout Australia, in partnership with existing Rabobank branches and where clients had a need for financial planning advice.

"We look forward to the Rabo Financial Advisors team joining the Hillross network and delivering their clients wealth creation strategies, expertise and access to a great range of products and services," he said.

Mr Dobbin said Rabobank was committed to focussing attention on the expansion of its core food and agribusiness banking operations, which were experiencing strong growth in the Australian and New Zealand markets. "Our future plans include the further expansion of our rural banking network, with several new branches to be opened in regional Australia in the next 12 months," he said.

The world’s leading food and agribusiness bank, Rabobank is one of Australia and New Zealand’s largest rural lenders and a major provider of corporate banking services to the region’s food and agribusiness sector. The bank has 81 branches across Australia and New Zealand.

The transaction is expected to be completed around the end of November 2009.

Media contacts:

Rabobank Australia & New Zealand

kelly.lund@rabobank.com