On Wednesday, IOOF released its fourth-quarter update for the 2021 financial year that states an outflow of $2.2 billion from 33 advisers’ departures.
The figure comes on the back of a $1.8 billion net outflow for the period to 31 May 2021.
In a statement, the company said the exits were an “expected transition” as part of its transformation program, Advice 2.0.
“This was due to a variety of reasons, including practices which IOOF believe were not suited to the economic or governance requirements of a professional advice model,” the statement read.
“On 1 June 2021, 406 MLC advisers joined with IOOF advice licensees and as at the end of June, IOOF maintained active advice services relationships with almost 2,000 financial advisers.”
Meanwhile, new self-employed advisers joining IOOF licensees resulted in inflows of $0.4 billion.
IOOF chief executive Renato Mota credited the recent acquisition of MLC – which saw over 400 MLC advisers join the wealth giant’s new expanded advice business – as a major factor in IOOF’s continued FUMA growth.
“The ‘new IOOF’ has over $200 billion of funds under administration across its platforms, in excess of $200 billion of investment funds across its multi-manager and direct investment portfolios, and relationships with more than 9,000 financial advisers, supporting more than 2 million Australians with their retirement and investment decisions,” Mr Mota said.
“This gives us a strong platform for future growth, including the enhanced ability to attract new FUMA through our extended scale and reach.”
Don’t worry they are already doing other deals to keep planners there. Obviously some planners are going to stay because Blackford will be doing deals to keep them. Everyone talks about Mota but what about Whereat?
IOOF is now just ANZ Financial Planning 2.0 !!!
Exits will steadily increase and talk about a trainwreck in slow motion, I have seen this coming for over 18 months.
Jacking up prices across the board when their culture is rubbish and their service no better. Will be more leaving in the future.
“including practices which IOOF believe were not suited to the economic or governance requirements of a professional advice model,” I think you’ll find the reverse is true. Advisers are leaving due to poor IOOF culture & Moto’s non-belief in the self-employed adviser model. Expect a flood of practices leaving in the next few months as ex-ANZWealth practices agreements expire in October.
How do you turn a big business into a small one? Give it to Renato Moto
Agree 100%. This is corporate spin at its best. Everyting they do, they do poorly. Trying to bring a one size fits all approach to all licenses under their banner, and doing it really badly. I see AMP style issues down the track.
The simple answer to this Renato is the culture
When you have two people in your business that were mentioned in the RC
How on earth do you expect to keep practices and improve your culture
Bronze you have won gold on this one. in 5 years FP’s will be directly licensed by a regulatory body. no need for licensees.
Haters gonna hate.
You seem to have overused that comment whenever a negative comment about IOOF is made!
Typical “informed consumer” in that you think you know things…. and the more you think you know, the more ignorant you expose yourself to be.
Many planners have only just started moving many of their clients out of the most conflicted vertically integrated organisation in this industry; I’m not sure how IOOF will be able to keep spinning the same yarn every quarter ….
Yep we moved on. IOOF has lost the plot. In addition culture of the client focus has been trashed. As far as spring cleaning goes I think you will find the practices have been doing just this and out went IOOF.
Oh Dear, the hidden shelf space income is dwindling
Sinking ship, 1990’s business model, ridiculous use of share holder money acquiring MLC. Short term FUM growth at a monetary cost. That FUM will disappear soon enough and will share holder value.
Profitability of advice would be interesting.
Hahaha ha I knew this would happen!!! Great strategy….. Just bring over ALL of the ANZ financial planning management and let them run everything just like ANZ financial planning! What could go wrong???
[b]Just wait for Jul/Sep 2021 Quarter!!!!!! [/b]
[b]It will be over double this! Maybe $5 Bil??[/b] [b]STRUTH![/b]
Who would work under the auspice of IOOF ???????????????
You would have to be stupid to believe that statement from IOOF. Dealer groups have been ripping off advisers and their clients for years. With client funded subsidies gone dealer group fees are now at full strength. Skyrocketing fees are exposing the inefficiency and lack of value of most dealer group models. Dealer groups in 5 years will become homes for advisers that can’t get their own licence.
Hopefully in 5 years time, we’ll be directly licensed by ASIC and dealer groups won’t be required. That also assumes there’s still an industry in 5 years time.
They’re not required now. All advisers should be either running their own self licensed practice, or employed by someone else’s self licensed practice. The whole concept of “dealer groups” and “authorised representatives” is totally unnecessary, and is primarily used for conflicted product distribution.
Why would you be in a toxic ioof environment
It’s all about FUM
Why make out that advisers dumped IOOF when clearly what’s being said here is that IOOF was doing some spring cleaning and made the call on most of these exits.
What rubbish – Bridges lost all their top planners
Oh dear.. it is called marketing spin – trust me lots of well run ethical firms left because they are well run and ethical.
@Brett R rubish. Advisers left because they could and should
MLC purchase one of the worst decisions I have ever seen. Not sure who would buy IOOF shares
IOOF Share Price July 2004: $4.26
IOOF Share Price July 2021: $4.26
Why would there be outflows just due to advisers leaving. Were they forced to use ioof products while there!
They sure were !!
Very good question. Very exposing.