Johannesburg - Stockbrokerage Barnard Jacobs Mellet [JSE:BJM]
will remain an independent brand after its acquisition by banking group First National Bank.
"BJM is a good brand and it is well respected in the market," said FNB Wealth CEO Willie Miller on Wednesday.
FNB announced earlier this month it would acquire the stockbrokerage, which has about 12000 clients, in a move aimed at strengthening the FirstRand [JSE:FSR]
wealth management offering.
This has left some BJM clients wondering where the group will be positioned and what value will be extracted from being part of a larger listed group.
With BJM having a well-established track record in the field of equity research, Miller stressed that this "value add" will remain a focus for the group but will be expanded to work with the RMB Morgan Stanley partnership already in place.
Despite FNB's focus on technology-driven solutions, the transaction will not see BJM positioned to compete with lower-cost discount stockbrokerage options. Miller said this is in line with other FirstRand offerings, which do not aim to compete purely on price but rather the value that can be added.
"I think that being part of the FNB stable will mean there will be the opportunity for more products in our general wealth management offering," Miller said.