Having sold Madison Financial Group to Infocus earlier this year, Clime has now opened a new financial advice licensee.
The Australian Financial Services (AFS) licensee – named Clime Advice – includes eight advisers who moved from Madison, according to Wealth Data.
In May this year, Clime entered into a heads of agreement to divest Madison and WealthPortal to rival licensee Infocus, stating there was “cultural alignment” with Infocus that would ensure a smooth transition for advisers.
At the time, Clime said it would streamline its operations to focus on asset management and private wealth instead.
“In combination with the cost initiatives already enacted, the divestment of Madison positions the company for profit improvement in FY25. This strategic move enables Clime to concentrate on its core asset management and private wealth capability,” the firm said.
Colin Williams, founder and director of Wealth Data, noted that Clime had planned to create its own licensee as part of the deal, while Infocus would provide all necessary licensee services.
In its results for FY2023–24, Clime chairman John Abernethy reaffirmed that the Madison business “added significantly” to the cost of the business and posed further risk without “any real benefit” to its internal advice division.
“Further, the licensing business had stagnated inside a market for financial advice that was declining under the weight of regulation and growing industry costs. In summary, the board determined that the group was devoting too many resources, and therefore costs, to Madison which was contributing only about 20 per cent to our group revenue and was in an operational loss position,” he said.
Weekly movements
Wealth Data examined the movement in adviser numbers for the week ending 21 November. There was a net decrease of three advisers, bringing the industry to 15,509.
Eight new entrants joined the profession, while five new licensees commenced and seven ceased operations.
In terms of adviser growth, 29 licensee owners had net gains of 47 advisers in total. Following Clime’s new licensee which gained eight advisers, WT Financial Group welcomed four advisers, including three new entrants and one adviser from PictureWealth.
SGN Financial was also up by four advisers, with all moving across from AdviceIQ, while Securinvest Financial Planners increased by three advisers who joined from Rhombus Advisory-owned RI Advice.
Janus Financial, Koda Capital and a new licensee all gained two advisers each, and a tail of 22 licensee owners were up by one adviser each, such as Shaw and Partners, Capstone and Morgans.
Looking at adviser declines, 30 licensee owners had net losses of 49 advisers all up. This was led by Infocus after it lost 10 advisers, including the eight who joined Clime. Wealth Data noted that Infocus still provides licensee services to these Clime advisers.
Rhombus Advisory bid farewell to five advisers, and AdviceIQ declined by four advisers.
Three licensee owners lost two advisers each, including Perpetual, while 24 licensee owners were down by one adviser each, such as Sequoia and Pitcher Partners.
