Single Investor licence
The Investor Group has opted for a single dealer’s licence as part of an ongoing drive to consolidate its financial planning groups.
The group will also centralise the supply of outsourced support services for firms in its financial planning division, Investor Financial Planning (IFP).
Financial planning groups within IFP currently operate under separate dealer licences, and speculation on whether Investor Group would establish its own licence has been mounting.
IFP Chief executive Tim Townsend says the group's licence should be operational in the next three months. He says the decision to adopt a single licence is part of the current tender process to outsource centralised services.
Investor Group's tender process for a wrap account, superannuation master trust, adviser software, investment research, technical support, compliance services and training is now well advanced.
A meeting has been held with IFP planners, who have had a hand in devising selection criteria.
Townsend says the planners have been "very involved in the process and saying what is important for their business."
A shortlist of four from the tender process has been chosen, the operational visitation program is completed and Townsend expects the announcement of the winning dealer group to be made by the middle of this month.
"The process is to establish a financial planning platform and move towards transition. We will select financial planning tools, build the platform, incorporate compliance then build the company around it," Townsend says.
Amid these changes, continued growth remains firmly on Investor Group's agenda.
Of the groups ten accountancy firms with financial planning arms, seven were acquired this year. The most recent purchase of Garrotts accountancy business, and associated financial planning business Paterson Financial Services, will officially be in place by the end of this month.
Investor Group also has two specialist financial planning businesses, Spectrum Financial Services and Supermaster Corporation.
The recent acquisitions bring the amount of funds under advice to more than $1.6 billion, and Investor Group is under negotiation with a number of groups.
"We will continue to add where quality permits. A lot of consolidation is taking place at the moment and there can be difficulties in finding the right groups," Townsend says.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
