MDS Financial closes planning arm Cube Financial
Sydney financial services group MDS Financial has closed its wholly-owned financial planning arm, Cube Financial, as part of a strategic decision to focus on its stockbroking operations.
MDS Financial chief operating officer Damian Isbister confirmed Cube Financial, which had three planners, a paraplanner and administration staff, was “not strategic to our business”.
“We’ve embarked on more of a broking focus than a financial planning focus over the past 12 months, and we have wound down our planning operation to the extent we don’t provide [financial planning] advice anymore.”
Isbister said while the entity Cube Financial still exists as a stock broking department, “there is nothing” by way of the provision of financial planning.
Also over the past 12 months, MDS Financial has moved to smaller offices in Sydney and the Gold Coast, eliminating $240,000 a year in costs, and reduced its staff complement from 38 to 27, he said.
“A decision was made to look at our expenses more closely in a tough market and eliminate them from the business so when there is a turnaround, we will be in a good, solid position.”
MDS Financial offers online stockbroker Trader Dealer, and also sells charting analysis software, which is its major revenue source.
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
