On Tuesday, 26 April Insignia Financial, formerly IOOF, reported 1,682 planners in its network as at 31 March 2022; a reduction of 83 advisers.
Insignia said the drop was “primarily through the loss of smaller practices in the self-employed channel” which also fell by 28 to 452 at the end of March.
Insignia added that it expects adviser numbers to stabilise from 1 July.
“The next phase of our advice simplification strategy will see us bringing two of our employed advice businesses together, combining the strengths of both businesses and unifying them under one brand and culture,” Insignia CEO Renato Mota said.
“This is a key step in our transformation to ensure we have a sustainable and accessible advice business into the future.”
The company added that the new operating model will “reflect the removal of previous subsidies” and is predicted to result in the reduction of approximately 30 adviser roles, with no expected impact on revenue.
Meanwhile, Insignia reported total funds under administration (FUA) of $220.3 billion; a $6.7 billion reduction on the last quarter on the back of “unfavourable market movements of $5.7 billion.
Funds under management (FUM) also fell slightly by 1.9 per cent on the last quarter to $96.9 billion.
To many advisers received sign on discounts of fees so will be locked in for a few years. At the coprorate level they might be able to change their name away from IOOF to fool the end client and shareholders but the vertically integrated model they are wheeling out remains alive and well at Insignia , just wish more advisers who like the free lunch and discounted fees would wake up to what is good for the industry and the value of their practises quicker.
Three words . . . deck chairs, Titanic.
Insignia will lose many more advisers as well … what did they expect when they increase adviser fees after the pandemic by over 100% … it’s a joke !!
Renato is deluded if he thinks the planner leakage will cease from the 1st of July; its such a toxic culture where IOOF is determined to gouge fees on every component of every single transaction. The RC exposed them for what they are and nothing has changed despite their rhetoric.
Interesting that they believe once they remove the subsidies that advice practices will stay and they won’t shed any more advisers .. Only time will tell.. but I think they are dreaming