By ELLEN READ
Global brokers are packing their bags and leaving the country but competition in the local retail broking market is about to increase.
Australian finance company Challenger International, part owned by billionaire Kerry Packer, is on the hunt for advisers - including a managing principal - to join its
soon-to-be-established New Zealand retail broking firm.
The firm, an offshoot of Challenger's Australian broking operation, Challenger First Pacific, will have the global backing of Credit Suisse First Boston (CSFB).
This sets it up in direct opposition to First NZ Securities, which opened for business on March 1.
First NZ, the result of a management buyout of CSFB's New Zealand retail unit in December, has retained a strategic alliance with CSFB's global organisation.
CSFB sold its Australian retail business to Australian Challenger International in February and also retained a strategic alliance with it.
Challenger International NZ chief executive John Rowley said the New Zealand broking operation - to be known as Challenger First Pacific NZ - will be open by July with between four and six Auckland-based investment advisers.
More will be added in Wellington and Christchurch.
The firm is applying for New Zealand Stock Exchange membership.
The new company will be based in the PricewaterhouseCoopers building in Auckland from May.
ASX listed Challenger International, 19 per cent owned by Packer, manages A$7 billion ($8.67 billion) in assets.
The Sydney-based company held unsuccessful talks with Merrill Lynch about a similar proposal last year.
