How do you run a not-for-profit planning business?
What happens when a mid-sized industry superannuation fund establishes its own financial planning company and is satisfied with running it on a cost-recovery model?
That is what NGS Super has done with recent evidence produced to a Parliamentary Committee revealing that it now employs 17 salaried advisers each servicing about 6,930 members.
NGS Super revealed it owned shares in NGS Financial Planning which it told the House of Representatives Standing Committee on Economics was established for the purpose of providing financial education and advice services to members of the Fund, but did not provide services to other funds or entities.
The bottom line is that NGS Super estimated that the cost of education, general advice and intra-fund advice per member in 2019 was $18.
It said all fees of NGS Financial Planning Pty Ltd, whether direct to member or to the fund, were charged on a cost-recovery basis.
“NGS Financial Planning does not earn a profit,” it said.
The fund’s answers to the Parliamentary committee revealed that the cost of planning services kicked off at $1,015 million in 2015 and had risen to $1,796 million last year.
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.