Spring FG shuns dealer group model
Financial services group Spring FG says it will never be pursuing a dealer group model again after a "bitter experience" with a rogue licensee last year.
Last year, Spring FG entered into an enforceable undertaking with the Australian Securities and Investments Commission following an investigation into one of its authorised representatives, Royale Capital Pty Ltd.
Spring FG managing director Keith Cullen said the incident changed the group's philosophy on authorised representatives.
"You can't describe us as a dealer group now, as all of our advisers are staff advisers and we'll never be pursuing having authorised representatives or corporate representatives again," he said.
Cullen said the group is now on a growth trajectory, with 100 per cent on its advisers on staff.
The licensee has just completed the integration of specialist advisory group Pink Diamond Financial Group, which provides advice to a book of around 700 medical professionals. It follows the acquisition of Sydney-based Moneytree Partners Group.
The group is now chasing further acquisitions, potentially in the real estate advice space, after adding two new advisory firms into its growing nexus.
Cullen said the acquisitions were just the beginning of the parent company's growth plans. He said the group would particularly like to expand into the residential real estate advice space.
"We think it's really the most overlooked asset class in the country when it comes to financial planning advice.
"Residential real estate is about a $1.3 trillion market and only about 10 per cent of our industry provides advice on it.
"We'll be looking at further acquisitions in the accounting and tax space, and insurance and financial planning and mortgage book spaces over the next 12 months," he added.
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