E&P Wealth’s focus is shifting to expand the client base of its wealth division as it completes the migration of clients into its retail wealth management division.
Since 1 July 2022, the firm has been shifting its Dixon Advisory private clients and Dixon Advisory and Superannuation Services (DASS) into a new division of Retail Wealth Management (RWM).
Clients on the RWM sit at 2,147, up from 1,624 at the end of December 2022, representing $3.9 billion in funds under advice (FUA).
Total E&P Wealth FUA is $25.7 billion, up from $22 billion a year ago, a rise of 16 per cent.
Some 65 per cent of FUA is now operating on the firm’s new FUA-based fee arrangement, and net revenue rose 6 per cent on the first half of 2023 from $41 million to $43.3 million.
Ben Keeble, chief executive of E&P Financial Group, said: “The growth in our retail wealth management offering has underpinned the shift to FUA-based revenue and materially improved the quality and absolute earnings in our wealth division.
“In the past period, we were focused on transitioning existing clients to the service. With that process now tapering off, our focus has shifted to expanding the client base.
“We focused on a number of key client growth initiatives including further investment in adviser-specific marketing, dedicated sales enablement tools and training, further investment in building our digital presence and a firm-wide refresh and uplift of our client-facing brands.”
It ended the six-month period with over 7,500 clients in E&P Wealth, which is the result of centralised business development initiatives focused on specific market segments.
The firm has a “stable adviser base” with significant capacity for growth and a strong pipeline of associates who are completing their regulatory training requirements.
There was a 16 per cent rise in funds under advice to $25.7 billion, up from $22.1 billion at the end of December 2022. This was driven by net client growth, rise in family office funds under administration and investment performance, it said.
Class action
It also confirmed it has reached an agreement to settle the class action filed by Shine Lawyers against DASS and two former directors Alan Dixon and Christopher Brown.
Client creditors of DASS who have applications before the Australian Financial Complaints Authority (AFCA) are expected to be able to claim under the Compensation Scheme of Last Resort when it comes into force on 2 April.
A Federal Court hearing is scheduled for 3 April to approve the settlement amount. If this is approved, the representative proceeding filed by Piper Alderman, which is stayed pending the Shine approval, will also be dismissed.
