In the past year, Insignia has experienced a notable decline in adviser numbers, a trend the company has attributed to a strategic shift in its operational approach. Responding to an inquiry from ifa in September, an Insignia spokesperson said that deliberate and decisive steps taken throughout the year to “refine and realign” their advisory services have had an impact on adviser figures.
“From these initiatives, we saw a reduction in adviser numbers due to the closure of the Lonsdale licence and the integration of MLC Advice into Bridges and subsequent reshaping of the service proposition.”
However, despite these setbacks, the licensee is bullish on its advice restructure, which includes a new partnership model for its self-employed licensees comprising RI Advice Group, Consultum Financial Advisers, and TenFifty.
At its annual general meeting last week, outgoing chief executive officer Renato Mota told Insignia’s shareholders that the licensee’s new ownership model for its self-employed licensees will create “what is expected to become Australia’s largest adviser-owned licensee group”.
This, in turn, will provide Insignia with a “greater opportunity” to focus on the growth of its Professional Services Advice businesses, Shadforth Financial Group, and Bridges Financial Services.
According to Mr Mota, Insignia is two years into creating “Australia’s leading financial wellbeing organisation”, with 2024 set to be a pivotal year in the context of positioning the firm for growth in 2025 and beyond.
Next year also marks the conclusion of Insignia’s original three-year MLC acquisition program. Subsequently, the firm will transition towards its new three-year strategy, prioritising initiatives such as streamlining the business and deepening partnerships with advisers and employers.
“Simplification remains a key priority for us and is central to unlocking benefits of scale, reducing risk, complexity, and cost to serve. We’ve made a lot of progress in simplifying the business and setting it up for sustainable growth in the future,” Mr Mota said.
“As one of the largest superannuation fund providers in Australia, our scale, expertise, and unique combination of advice, platforms and asset management, is a source of competitive advantage.
“I’m confident we are building a business that is more relevant than ever and well positioned to take advantage of opportunities ahead.”
Mr Mota earlier announced he was leaving the firm after 20 years at the end of February 2024.
Although he remains confident in the firm’s future, Steve Prendeville, founder and director of Forte Asset Solutions, told ifa recently that Mr Mota’s departure will create a “management void” that will need to be filled to rebuild its damaged culture.
“I think it comes down to culture, in that they’ve brought together multiple dealers and licensees and put them in all in one, and its culture has been, in some ways, destroyed in many cases. Yet what advisers seek is that collegiate culture … plus, they want leadership,” Mr Prendeville said.
“I think that the new management that comes in, it needs to continue what’s been started because there is momentum behind it. I think Renato has done a really good job of it. He’s built the largest business on the advice side and so, yes, there’s challenges, but it all comes back to management and particularly cultural management, that will be the determinant from success or maybe failure.”
Insignia’s aspirations for the future hinge significantly on its new advice services partnership model which will operate with independent management, oversight and governance, with input from both Insignia Financial as well as key advice practice representatives.
Commenting on the new partnership back in July, Mr Mota said: “This is a transformational initiative for our advice offering and will accelerate the return to profitability of our advice business, while ensuring our advice services model is positioned for growth as the financial advice industry continues to evolve”.
Additionally, at the company’s AGM, Insignia’s chairman, Allan Griffiths, said that the proposed partnership model continues to generate “a high level of interest and enthusiasm” from advisers.
