Insignia split sees Rhombus Advisory take top 5 licensee spot

In July last year, Insignia first announced its intention to reset its financial advice operating model by launching a separate partnership model focused on self-employed licensees. This comprised RI Advice Group, Consultum Financial Advisers, and TenFifty.

The model was previously called Advice Services Co but is now called Rhombus Advisory and was designed to help Insignia grow practices and advisers operating under its own Australian Financial Services Licence (AFSL).

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In its quarterly update this week, the licensee said Rhombus had successfully separated on 1 July 2024.

“Through this unique and innovative partnership model, we will continue to have an equity stake in Rhombus Advisory’s high-quality advice licensee business while focusing on strengthening our relationships with Rhombus advice practices. This is another important milestone in our strategy to simplify and optimise our business,” Insignia chief executive Scott Hartley said.

Insignia retains 37 per cent of equity, but it is expected to be deconsolidated from the group in FY2024–25.

The change sees self-employed advisers at RI Advice (210 advisers) and Consultum (279 advisers) move to the Rhombus Advisory licence. Meanwhile, Insignia wholly owns and retains advisers at Shadforths (119 advisers) and Bridges (97 advisers). The firm is focused on “unlocking the growth potential of both businesses”, it said in its quarterly announcement.

Rhombus now has a total of 489 advisers and Insignia has 229 advisers.

As a result of Insignia’s advice reset, Rhombus now holds the fifth spot in the top licensee ranking which pushes Count into second place, the spot formerly held by Insignia. AMP retains the top spot with 832 advisers while Insignia, in its new form, no longer sits within the top 10.

As of 25 July, the ranking was:

This compares with the following ranking at the end of the 2023–24 financial year:

Other major changes in the past year at Insignia that have affected its advisers include its sale of Millennium3 to WT Financial in December 2023 and the exit of Godfrey Pembroke from Insignia’s AFSL in March 2024 as it becomes an independently run business.

Hartley, the firm’s new CEO, was appointed in February 2024 following the departure of Renato Mota after 20 years with the licensee and five as chief executive. Hartley is the former chief executive of wealth management at AMP Australia.

Moreover, Insignia unveiled a new operating model under Hartley’s leadership earlier this month. This will centre around four dedicated lines of business: asset management, superannuation (master trust), wrap platform and advice. The executives are a mix of existing staff and new appointments.