How do you run a not-for-profit planning business?

ngs super industry super fund financial planning financial planner

3 June 2020
| By Mike |
image
image
expand image

What happens when a mid-sized industry superannuation fund establishes its own financial planning company and is satisfied with running it on a cost-recovery model?

That is what NGS Super has done with recent evidence produced to a Parliamentary Committee revealing that it now employs 17 salaried advisers each servicing about 6,930 members.

NGS Super revealed it owned shares in NGS Financial Planning which it told the House of Representatives Standing Committee on Economics was established for the purpose of providing financial education and advice services to members of the Fund, but did not provide services to other funds or entities.

The bottom line is that NGS Super estimated that the cost of education, general advice and intra-fund advice per member in 2019 was $18.

It said all fees of NGS Financial Planning Pty Ltd, whether direct to member or to the fund, were charged on a cost-recovery basis.

“NGS Financial Planning does not earn a profit,” it said.

The fund’s answers to the Parliamentary committee revealed that the cost of planning services kicked off at $1,015 million in 2015 and had risen to $1,796 million last year.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 2 weeks ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 2 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

6 days 1 hour ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

3 weeks 5 days ago

The Reserve Bank of Australia's latest interest rate announcement has left punters disheartened on Melbourne Cup Day....

5 days ago