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


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.
Recommended for you
The regulator has convened multiple sitting panels of the FSCP regarding AFSL breach reports which have identified poor superannuation advice from financial advisers.
Licensees are developing their own bespoke managed account strategies and 20 per cent of advisers have said they are encouraged to adopt the products by their licensee.
The financial advice and investment services firm has welcomed nine senior advisers to its ranks, including six who have jumped ship from Perpetual Private, with the firm actively looking to expand.
A growing trend in the platform space is determining how to look after individuals who have been orphaned by their advisers, according to Investment Trends.