On Thursday, the wealth giant confirmed the total number of advisers was 1,883 as at 30 September, down 65 for the quarter, while practices in its self-employed channel have also dipped by 37 to 539.
IOOF CEO Renato Mota said the results were expected due to “a period of significant transformation”.
“We have strong early momentum since the acquisition of MLC with the progression of our transformation program,” he said.
“Continued simplification provides the foundation of future growth of our business, with synergy realisation will deliver benefits to clients and shareholders alike.”
In regard to the drop in adviser numbers, Mr Mota said IOOF’s focus on “practice sustainability” and professional standards including the FASEA exam led to re-basing of adviser numbers.
Self-employed advisers numbers fell to 63 which have been contributed to Lonsdale (19), Consultum (13) and M3 (10) as advisers moved to new licensees. Five others made the switch to IOOF’s self-licensed alliances model.
IOOF said the departures were “considered unsustainable for the advice strategy and associated support model”.
“The integration of MLC Advice has focused on introducing IOOF technology, including Wealth Central, to MLC advisers with a positive early response,” Mr Mota said.
“The self-employed adviser channel is now being transitioned to a sustainable basis and, with the exception of MLC, is expected to be on a break-even runrate by the end of our financial year.”
Mr Mota said it is expected the MLC self-employed segment will break even in the 2024-25 financial year.
Meanwhile, funds under administration increased by $1.8 billion over the quarter to $222.8 billion and funds under management jumped by $0.6 billion to $98.3 billion.
The results come after IOOF announced it will rebrand to Insignia Financial next month.
No adviser of any quality would stay with IOOF and use their inferior in house offering? The ones that stay are clearly not the sharpest knives in the rack?
Pfft.. all those who no longer want to work the way of the vertical integrated model that bought disrepute to all advisers are the ones jumping ship Renata! The businesses you are losing are top quality businesses who do not want cookie cutter robo advice for their clients but a real engagement
Exactly