Over 200 advisers depart Insignia, Mota’s successor still unconfirmed
Over 200 advisers left Insignia in the three months to 31 December, while its new advice operating model is expected to be launched in July.
Reporting its results for the three months to 31 December, under financial advice, it said it has 1,199 financial advisers, comprising 211 advisers in the employed channel and 988 advisers under self-employed and self-licensed channel.
The largest decline was seen in the self-employed (licensed) model, which was down from 684 at the end of September to 533.
Self-licensed advisers were down from 482 to 455, and professional services (employed) advisers were down from 219 to 211.
“The reduction of 186 advisers was primarily from within the Advice Services channels as a result of the sale of Millennium3 to WT Financial. There was also a reduction of 27 authorised representatives from the self-licensed offer as a result of a larger practice being sold and some other smaller businesses exiting,” it said.
Looking at strategic initiatives for the next three years, it said the planned migration of MLC Wrap to Evolve is on target to be completed by early April 2024, which will see $38 billion and 100,000 client accounts move to Evolve.
The change in the adviser operating model, formerly known as Advice Service Co and now called Rhombus Advisory, has been established.
“Advisers have continued to demonstrate positive sentiment towards the partnership strategy and participated in a roadshow during the second quarter of 2024 [financial year]. The equity participation approach was presented to advisers and focus is now shifting towards implementation by July 2024.”
It also appointed Chris Weldon in November as chief client officer to lead its client wellbeing division although it is yet to name a successor for chief executive, Renato Mota, who will leave next month.
It was announced in October 2023 that Mota would be leaving the firm after 20 years at the business and five years as chief executive. At the time, it said a search for a new CEO “had commenced”.
Asset management
In its results for the three months to 31 December, the firm said it saw $511 million in outflows from asset management and it also made pension payments of $872 million from its pensions arm.
However, this was offset by positive market movements, which meant overall funds under management and advice (FUMA) rose from $293.1 billion to $300.6 billion.
This was divided between $215 billion in funds under administration (FUA), which had increased by $9.6 billion, and $85.5 billion in funds under management (FUM), which decreased by $2.2 billion.
Growth on its managed discretionary accounts and separately managed accounts saw FUA increase by $1.1 billion.
AUTHOR
Laura Dew
Recommended for you
With Fortnum Private Wealth and Professional Financial Services now unified under the Entireti umbrella company, CEO Neil Younger has detailed to Money Management the firm’s new direction and future expansion.
The FAAA has suggested looking offshore for overseas financial advisers to ease the adviser shortage, but are employers willing to take on the burden of workplace visas?
There may be a huge influx of alternatives coming to the market, but timing and access difficulties mean advisers can easily end up disappointed with their selection, according to Morningstar global CIO Dan Kemp.
An NSW individual has pleaded guilty to one criminal charge of providing unlicensed financial services after promoting crypto investments at national seminars.
Add new comment