IFFP considered bidding for Storm Financial client book
Industry Funds Financial Planning (IFFP) considered bidding for part of Storm Financial’s remaining client book through advice firm broker Kenyon Prendeville, but decided not to pursue it, according to general manager David Haynes.
He told Money Management the Industry Super Network (ISN) dealer group eventually “came to the view we would not be actively pursuing that proposition”.
Last month, Kenyon Prendeville was appointed by Storm’s receivers KordaMentha to sell its remaining client book, covering 10,230 clients, with a total of $500 million in funds under management, $957 million in cash accounts and $414 million in margin loans.
Hayes said the bid was considered following the release by Rice Warner in February this year of ISN-commissioned research on fee-based advice delivered by IFFP.
In particular, it formed a significant topic of discussion at the IFFP annual conference in Hobart, Tasmania, in February, he said.
“Frankly, this research revealed the IFFP model is the only true fee-for-service model operating outside of the high-end boutique firms."
It demonstrates the high value of the service for clients in relation to our retail competitors, both in terms of the costs and of the underlying value of our advice.
It found on average there was six times the value in IFFP financial plans in relation to our retail competitors, and up to 13 times more value in some instance.
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