AXA has set down a major plank in the overhaul of its distribution arm with the launch of a third financial planning arm.
Altus Financial Services will specialise in risk and superannuation distribution, although it will also provide general financial planning advice if required by the client, says Altus national manager Steve Browning.
The new financial planning arm joins Charter and AXA Financial Planning, which Browning says will remain intact.
“We are now offering planners who want to join AXA three branding choices, with each group focussed on specific areas,” he says.
Planners will be able to co-brand under the Altus banner and there will be no AXA shareholding in groups which choose to join the new dealership.
As part of the deal for joining Altus, AXA will provide marketing, technical and training support. Browning says the training support will be focused on the planner developing their business.
“Training and development will focus on advisers who want to grow their business into dealerships with their own dealer’s licence,” he says.
“We will be employing specialist business and financial advisers to help the planner grow the business instead of hiring BDMs who would just deal with marketing matters.”
Planners will also be allowed to sell a range of products from 40 different fund managers and life companies which are on the Altus-approved list. Portfolio management services can be provided by the Summit wrap service, which is another AXA product.
“There is no compulsion to sell AXA products as the approved list has more than 400 products on it,” Browning says.
Planners will have the choice of charging a fee-for-service or relying on commissions.
AXA is hoping to have about 100 planners in the new business by the end of the first year. Browning says the group is seeking to attract financial planning businesses that are still growing. Similarly, he is looking for planners who are looking to retire who AXA can help with succession planning.
The dealership will also offer advisers help with meeting the provisions of the Financial Services Reform Bill outcomes which are expected to be phased in during the next couple of years.
The launch of Altus is being supported with an advertising campaign aimed initially at financial planners. The second part of the campaign will be aimed at the public to persuade them to use Altus advisers.
As management scours planning market
AXA Australia managing director Les Owen will not rule out buying dealer groups as part of the group’s strategy to revamp its ailing distribution network.
“We are changing our distribution and part of that strategy might involve buying dealerships if the opportunities arise at the right price,” he says.
Owen emphases the group is not buying distribution at any price.
“Our growth, to be in the level below the top three, will not depend on acquisitions as two-thirds of acquisitions do not add shareholder value,’ he says.
Owen’s comments follow comments by AXA Group chairman Henri de Castries stamping AXA Australia as one of the global financial services group’s key lynchpins.
De Castries, who has only recently been appointed chairman, chose Australia as one of his first forays overseas.
“The Australian operation is a major challenge, but we had good success turning around businesses in the US so we don’t want that record tarnished by Australia,” he says.
