With Insignia Financial chief executive Renato Mota announcing he will depart in February 2024, Money Management takes a look at his five years in the leading role.
Mota first joined Insignia in 2003 as head of group strategy and communications before climbing the ranks through a variety of roles.
These roles included general manager of distribution, group general manager for wealth management, and acting chief executive. He was then named CEO and managing director in June 2019.
In an ASX announcement on 20 October, Mota said: “It’s been a privilege to be part of Insignia Financial over the past 20 years and its CEO over the last five. Having established a clear path for the next three years, I feel this is the right inflection point to provide the business with fresh perspective to continue the journey.”
Prior to his 20-year career in the financial services business, he worked at Rothschild and big four banks National Australia Bank (NAB) and ANZ.
Insignia Financial chairman Allan Griffiths also commented: “Over his time with the group, Renato has been instrumental in transforming IOOF and ultimately Insignia Financial into one of Australia’s leading wealth management organisations.”
Shares in Insignia, which listed on the ASX in 2003, have fallen 67 per cent over five years to 20 October versus returns of 21 per cent by the ASX 200 over the same period.
December 2018
Mota, who was then group general manager of wealth management, was appointed as acting chief executive after APRA took action in the Federal Court against managing director Christopher Kelaher and fellow director George Venardos for contraventions of the Superannuation Industry Supervision (SIS) Act.
April 2019
Kelaher formally departed IOOF after 10 years at the helm amid the APRA investigation.
June 2019
Mota took over as chief executive on a permanent basis.
At the time, Mota acknowledged the company’s advice businesses would need to move to a new commercial model which accommodated the reality that the days of “subsidised” advice would not work in the future.
September 2019
The Federal Court dismissed the charges against Kelaher and Venardos, with Justice Jayne Jagot calling the case “unpersuasive” as it relied too much on hindsight and ordering APRA to pay costs. IOOF shares rose following the 305-page judgment, and it ended a turbulent time for the firm with the court case and appearances before the Hayne royal commission.
It was also revealed that IOOF was the only institution which significantly grew its planner numbers, mostly on the back of its completion of the acquisition of ANZ Wealth’s four aligned groups which Mota had worked on.
May 2021
Mota led IOOF’s $1.4 billion acquisition of MLC Wealth from NAB, which reached completion in May 2021. The deal brought the firm’s funds under management to $494 billion and saw an additional 406 MLC advisers join Insignia’s network.
At the time, the chief executive said: “Today we become a new IOOF. We have the strategic intent, the talent, and now the scale, to deliver our advice-led wealth management proposition to more Australians than ever before.”
During his time as an analyst at NAB between 1999 and 2002, Mota also assisted the bank when it first acquired MLC Wealth from Lendlease in the $4.5 billion deal.
November 2021
In November, IOOF Holdings changed its name to Insignia Financial as a new corporate brand, describing how it will be a “new era of financial wellbeing” for the firm that is reflective of the MLC acquisition’s completion.
“It felt appropriate to contribute to IOOF’s enduring legacy under a new brand – one that signifies what we stand for,” Mota said.
February 2022
Following the MLC Wealth acquisition and its renaming, the firm announced a strong half-year profit to 31 December 2021, with underlying net profit after tax jumping to $117.9 million, up 79 per cent on the previous period.
“Our first results as Insignia Financial delivered a strong uplift in financial performance, with significant growth in underlying profit, FUMA and gross margin,” Mota commented.
August 2022
The Financial Services Council (FSC) announced the appointment of Mota to its board of directors in August 2022.
“I am pleased to take on the role as director of the FSC board as we work together to improve the long-term financial wellbeing for all Australians,” he said.
July 2023
In July this year, the firm announced a move to reset its advice operating model by developing a new business under the working name of Advice Services Co (ASC).
ASC will be a partnership ownership model for self-employed licensees comprising RI Advice Group, Consultum Financial Advisers and TenFifty, headed up by current Insignia chief advice officer Darren Whereat.
This will have a strong mandate to grow advice practices and advisers operating under its licences as Insignia seeks to become Australia’s largest adviser-owned licensee group.
Mota said: “This is a transformational initiative for our advice offering and will accelerate the return to profitability of our advice business, while ensuring our advice services model is positioned for growth as the financial advice industry continues to evolve.”
August 2023
In its FY23 results, Insignia revealed a net profit after tax (NPAT) of $51.2 million for FY23, a rise of 39 per cent from the previous year.
This was largely driven by gains of $43.2 million on the sale of Australian Executor Trustees (AET) which it sold to Equity Trustees in a $135 million transaction last year.
The firm announced a strategic refresh focused on improving clients’ financial wellbeing, deepening its partnerships with advisers and employers, simplifying the business, and building a safe and trusted business.
“FY23 was a year of achievement. A year of delivering on our promises – evidenced by our net funds flow outcomes, simplification, product improvements, and exemplified by a number of awards and client outcomes,” Mota remarked.
In the advice division, it said the firm has 1,413 advisers in its network and 461 practices, down from 1,600 in June 2022. Insignia attributed the decline to regulatory change, the closure of the Lonsdale licensee, the departure of two member practices, and the reshaping of the Bridges business.
October 2023
Since announcing its FY22–23 results, the firm has seen adviser numbers fall below 1,000 to 947 advisers, according to Wealth Data.
This calendar year to date, Wealth Data found that Insignia has experienced the most adviser losses at 122, compared to AMP in second place at 44 losses.
In the 12-month period from May 2022 to May 2023, Insignia saw a loss of 122 advisers while AMP saw a loss of 158, the highest loss any licensee had seen over the period.
Mota announced his departure on 20 October.
Look at the share price performance and the cap raisings done. What a performer. If you like to see shareholder wealth evaporate.
If Darren replaces him they are F*#@**D !!!
This may possibly be the smartest move he has made in his life, getting out before the collapse of the “Middleman Clipping the Ticket” Licensees. With 2/3rd destruction to shareholder value over the last 5 years, there is not much more left to go.