Zurich takes on back office
Zurich Financial Services has staked its claim in the financial planning back office market with the launch of a dealer group outsourcing service.
Zurich's Dealer Back Office Services will be provided on a flat fee-for-service basis calculated on a per annum basis for each proper authority holder, rather than linking it to a master trust or dealer's production output.
The move will put Zurich in head-to-head competition with MLC's successful 360 service which has already attracted 12 dealer groups.
Zurich's head of distribution, Steve Newnham, says Zurich's method of charging was a fairer way to supply back office services.
"If by using the service a planning business does see growth, the adviser gets the full benefit of that growth without it being tied back to Zurich," Newnham says.
The service has been piloted with Zurich's alliance partners since January and will be made available to a broader market in the near future.
"We are looking at accountants, brokers and parts of the legal profession moving into supplying financial planning. We still need to sit down with them and discuss the service as we are not offering a one size fits all approach," Newnham says.
Zurich currently has 70 advisers using the service and aims to have a total of 250 by the end of the year.
AUTHOR
Jason Spits
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
