BLOCK TO TACKLE FINANCIAL PLANS

Seems like all kinds of companies want in on the investment-advice business these days, but the 1998 entrance of H&R Block Inc. created more than the usual buzz. Sixteen million customers will do that.

The Kansas City, Mo., company, moving on several fronts to diversify beyond tax-return preparation, sees financial planning and investments as obvious offerings for its largely middle-class customers. Late in the year, H&R Block agreed to acquire Kansas City-based broker-dealer Birchtree Financial Services Inc., giving it 200 independent-contractor reps but, more important, the ability to sell securities in all 50 states.

That followed the test launch of financial planning services at H&R Block offices in Nashville, Tenn., and Cleveland, Cincinnati and Columbus, Ohio.

But that wasn’t all. H&R Block began an aggressive campaign to acquire regional certified public accounting firms, reaching agreements to buy five by year’s end. Among them is Friedman Eisenstein Raemer & Schwartz, one of Chicago’s largest, which has a substantial money-management and adviser subsidiary, Essex LLC.

Clues to H&R Block’s strategic plan might be gleaned from the company’s hiring in September of Mark A. Ernst, formerly a rising star at 8,800-planner American Express Financial Advisors. Mr. Ernst will have some say in how the financial advice effort is run, given that H&R Block CEO Frank Salizzoni tapped him as his successor. Mr. Salizzoni is expected to retire within two years.