SMC Genesis Financial Enters into New Australian Joint Venture

Rhea-AI Summary

SMC Entertainment (OTC: SMCE) has announced a significant expansion initiative in Australia through a joint venture with Best Practice Accounting Group (BPAG). This venture aims to provide tailored financial services for accountants and financial advisers, with initial support from three accounting practices. The joint venture seeks to create a sustainable growth model by addressing succession planning for over half of Australia's accountants, enhancing collaboration between accountants and advisers. The Australian wealth management sector boasts over 25,000 advisers managing approximately $3.9 billion in annual fees.

Positive

• Executed joint venture with BPAG, targeting Australian accountants and financial advisers.
• Addresses a critical need for succession planning among over 34,000 accountants in Australia.
• New model promotes long-term partnerships, potentially enhancing revenue streams for participants.

Negative

• None.

Charleston, SC, Feb. 10, 2022 (GLOBE NEWSWIRE) -- SMC Entertainment, Inc. (“SMC” or the “Company”) (OTC: SMCE) and its wholly owned subsidiary Genesis Financial are pleased to announce that they have executed on the next phase of their expansion plans in Australia.

The Company has finalized its accountant’s practice and development Joint Venture with Best Practice Accounting Group, BPAG. The Joint Venture has been executed and will be launched this morning. The first three targeted accounting practices have already signed up.

The Joint Venture will be co-managed by Nick Brooks, the current executive director of the FinancialLink Group (TFLG) and John Peterson, CEO of Best Practice Group (BPAG).

The new joint venture will assist Australian Accountants and Financial Advisers to create a bespoke one-on one platform throughout Australia. While the concept of Accountants and Financial Advisers partnering to deliver value to clients is not a new one, there has never been a strategic initiative on behalf of both industry sectors on this scale before. This strategic partnership will provide an entirely new growth and succession plan for Accountants and Financial Advisors .and provide management, and financial continuity for clients into the future.

"Both Accountants and Advisers have skin in the game," says John Peterson, founder of Best Practice Accountants Group. "Both parties work well together when structured to do so. Our development programs create income for both Accountants and Advisers and both are rewarded properly in the short and long term through profit distribution and balance sheet participation. There are 34,000 public accountants of which 55% are over the age of fifty, and do not have a succession plan. The vast majority of them (circa 90%) also don't have a financial planning business unit operating alongside their accounting business”

The unique model offers equity participation for both Accountants and Financial Advisers. Participants are vetted for suitability through the Best Practice Quality Assurance program, then actively supported from inception and thereafter. The AFSL, compliance, and specialist financial adviser support is provided by TFLG’s national and state support team.

TFLG Executive Director Nick Brookes said that “Traditional referral" based models between Accountants and Advisers have failed to deliver long-term success for both parties. Advisers have often been criticized by Accountants for lacking long term commitment only being interested in the "low hanging fruit" referral opportunities, while Accountants have consistently been criticized by Advisers for a lack of consistency of "active referrals" without Advisers having to do a lot of leg work to remain "top of mind" when it comes to generating those referrals from Accountants”.

The new joint venture offers a more diligent recruitment and selection criteria for both Accountants and Financial Advisers, only pairing up those parties that demonstrate similar levels of long-term commitment to the Intergenerational Business Model

The Joint venture will provide financial and wealth planning services, as well as client development services to qualifying accounting firms in Australia

“We are very excited about the launch of the BPAG under the “Best Practice Nextgen” brand. We see great potential in the project. It will give us a meaningful and obvious benefit and advantage in the marketplace in general, and Australia in particular. This allows us to leverage and expand our resources and capabilities to accountants, qualified investors and the self-managed super funds in Australia.” said Chuck Provini, our chairman.

Linking the USA to Australia

Australia and the United States are trusted trade and investment partners conducting US$65 billion in two-way trade and an investment relationship valued at US$1.1 trillion. Several factors promote US/Australia investment activity that SMCE Genesis Financial is positioned to capitalize on. Macro factors promoting Australia investment into the US include. 

· 27 years of uninterrupted economic growth -Australia's strong, diverse, and growing economy adds up to more opportunities. 

· Institutional strength - Strong institutions, an exceptional services sector, and an ability to respond to global change. 

· World-class innovation - Australia supports world- class, globally significant research, and development opportunities. 

· Investment focused - Superannuation system plus returns from mining and property have increased the Australian investment pool.

Australia a Gateway to the Asian Markets 

Australia is also well-positioned in the world's fastest growing region, the Asia-Pacific. With strong trade links, strategic location, a favorable time zone and a highly educated, multilingual workforce, Australia is uniquely positioned as a location to do business in the Indo-Pacific. 

US investment comes to Australia to invest in Asia-Pacific and Asian/Australian investment goes to the US to invest in opportunities in the world’s financial capital. 

About Genesis Financial, Inc.

Genesis, with twenty-three employees under its purview along with 120 financial consultants, advisors, and representatives, is a fully integrated financial technology company with a full suite of digital financial services solutions. Genesis, focusing on fintech-powered wealth management services, operated its business through two Australian regulated entities in wealth management, tax and accounting advisory services. The two operating subsidiaries are the Ballast Group and The Financial Link Group. For more information, visit www.ballast.com.au and www.tflg.com.au.

The Australian Wealth Management industry has over 25,000 financial advisors managing 2.2 million investors. The annual fees generated by the Wealth Management industry is close to $3.9 billion. According to AITE (2020) at least ten million adults are underserved or not served at all by the Australian Financial Advisors. Genesis has firmly positioned itself to acquire and consolidate to expand in Australia's fragmented Independent Dealer Group business sector.

About SMC Entertainment, Inc.

SMC is a versatile holding company focused on acquisition and support of proven commercialized financial services and technology (fintech) companies. SMC's multi-discipline growth by acquisition approach is to enhance revenues and shareholder equity. For more information on SMC, visit www.smceinc.com.

Press Release Contact:

Erik Blum
President
SMC Entertainment, Inc.
ron.hughes.operations@gmail.com

Safe Harbor Statement

This press release contains statements, which may constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company, members of its management, and assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.

FAQ

What has SMC Entertainment announced regarding its expansion in Australia?

SMC Entertainment has launched a joint venture with Best Practice Accounting Group to provide tailored financial services for Australian accountants and financial advisers.

How many accounting practices are involved in SMC Entertainment's new joint venture?

Three accounting practices have initially signed up to participate in the joint venture with SMC Entertainment.

What is the significance of the joint venture for accountants in Australia?

The joint venture addresses succession planning for over 34,000 accountants, many of whom lack a strategic plan for future transitions.

What are the expected benefits of the joint venture for SMC Entertainment?

The joint venture is expected to enhance revenue streams and collaborate more effectively between accountants and financial advisers.

What market potential does the Australian wealth management sector hold?

The Australian wealth management industry generates nearly $3.9 billion annually and serves over 2.2 million investors.