Insignia Financial, formerly IOOF, has reported its adviser numbers declined by 118 to 1,765 as at 31 December 2021, which it attributed to the loss of smaller practices in the self-employed channel “that were unable to transition to a new sustainable advice model”.
The number of practices in the channel fell by 59 to 480.
“Where advisers left due to retirement or exit from the industry, a significant portion of their client books of business have been retained,” Insignia Financial chief executive Renato Mota said.
“During the last 12 months, Insignia Financial has facilitated over 50 intra-group acquisitions and mergers as part of our adviser succession plan.
“This consolidation not only aids succession and retention of clients and FUA, but improves the scale of advice practices, reduces our cost-to-serve and supports the path to break-even of our advice business.”
Insignia said it expects adviser numbers to stabilise in July.
Meanwhile, Insignia reported funds under administration (FUA) of $227 billion (an increase of $4.2 billion over the quarter), with net flows also improving on the back of the group’s Evolve platform and stabilisation of outflows from acquired MLC and Pensions & Investments (P&I) platforms.
Insignia also confirmed a $556 million increase in funds under management (FUM) to $98.8 billion.
“We have recorded a significant improvement in net flows in the quarter, driven by inflows into key segments such as IOOF’s advised platform, and a significant decrease in the rate of outflows in the P&I and MLC segments,” Mr Mota said.
“These results have been achieved amid an integration and simplification programme which is delivering planned synergies.
“The success of the migration to our Evolve platform, along with its scalable technology and enhanced user experience, cements its position as a key growth engine for the group moving forward.”
Just what the industry needs, more small AFSL’s oblivious to their obligations in running a AFSL whom think they are doing it easy. A ticking time bomb for ASIC.
Vertical integration is still alive – but maybe not well.
The corporate spin in the article is laughable. IOOF is haemorrhaging advisers across all licences because their service proposition is rubbish. Everything they try to execute is done so poorly it’s ridiculous. The only way they seem to be able to add advisers is by buying networks which is not surprising given they poor service. Their fees are also ridiculous and definitely not fair value for what they deliver.
Flawed business model, vertical integration not in clients best interests! Dixon advisory another example! How Mota couldn’t see the elephant in the room beggars belief! Anyone licensed through IOOF mlc is simply a internal product flogger! But the worst part is the product is some of the worst platforms and funds in the industry! Insignia won’t survive long term!
Weren’t able to be transitioned to a sustainable model – isn’t that just corporate speak for the larger practises within a certain respected IOOF license went and got there own AFSL and those practises will thrive in the coming years ?
Got out of IOOF and obtained our own AFSL. Not only did we not cop the increases but actually made a saving on our previous fees.
I would encourage all IOOF practices to do the same. We now wonder what we were ever paying them for
We done the exact same thing; should have done it many years ago (but Bridges wouldn’t let us go and take “our” clients with us)
That’s what I did too
Ask them to breakdown the increase in FUA and FUM to market increase and new net clients flows. may paint a completely different picture!
My goodness, for him to think this …
““The success of the migration to our Evolve platform, along with its scalable technology and enhanced user experience, cements its position as a key growth engine for the group moving forward.””
… shows he has absolutely no idea. The Evolve platform is substandard and lacks basic reporting and operating features. In addition, the migration has not been smooth or successful.
I am on my way out of Insignia/Consultum after been with them for 4 years.. As soon as they bought out MLC and their advice practices I knew it would be time to get out.
Then with PURE GREED they announced that fees were going up between 40-60% based on the practice revenue. How is that justified, with isn’t ASIC or the press focusing on this as the main reason advisers would be leaving Insignia in their droves. Cant be justified and all done during the pandemic, the worst 2 years advisers have faced.
Renato’s “sustainable model” is confusing as there there is nothing short of the 40% increase in fees that has been bestowed on my practice. The support service of IOOF (Insignia) has diminished. The reason why advisers are leaving is because they feel less engaged because they are not being listened to especially from very experienced and educated financially advisers like myself.
Pure Greed… fancy increases fees by 40-50% in these times… I hope they go under and advisers leave them in their droves.
Don’t you know that when adviser numbers decrease it is only ever linked to the advisers themselves. Licensee’s have every right to increase their fees by 50% plus for no justifiable reason and without improving their service. We can only hope karma is real. If you want something funny ask more licensees what their CVP is for their fees, they splutter for at least 15 minutes.
If you are licensed by one of the big licensees you are just a product sales person dressed as an adviser.
What a load of garbage; our business departed IOOF and it operates under an extremely sustainable (profitable) advice model. Its just IOOF making excuses as normal.