MyAdviser gains scale benefits from IOOF stake
Dealer group MyAdviser is gaining scale benefits from its association with institutional stakeholder IOOF, according to group managing director Phillippa Sheehan.
IOOF completed a compulsory acquisition of Plan B – the majority owner of MyAdviser – late last year to become the 93 per cent owner of MyAdviser.
Sheehan said that in retaining a 7 per cent stake in MyAdviser she still has a voice on the board.
The group is fortunate to have been bought by IOOF rather than by another institution since the group has a history of buying and holding, and offers scale benefits without dictating how the business must be run in terms of the approved product list and other contracts.
One of the biggest and most immediate benefits has been a scale advantage in share trading rates thanks to related IOOF groups that specialise in stockbroking and direct investments.
“All of a sudden we’ve got scale,” Sheehan said. “Our clients are actually benefitting by IOOF being in the picture rather than the other way around.”
The group also provided resources in terms of campaigns, rather than MyAdviser having to write and develop everything in house, she added.
Sheehan described the relationship as “so far so good”.
“Just the fact that I can halve the trade rate that I can get today just by being part of a network is a huge value-add to the end client. Even if the adviser charges a fee over the top of that it will still be cheaper than what the trade rate used to be.”
This aspect is especially beneficial given that clients are increasingly turning from managed funds to direct investments, which can be allocated either by the adviser or more often through an in-house model portfolio, she added.
‘You had an expectation that has changed’: AMP
EXCLUSIVE AMP’s new advice executive has explained his position on BOLR, pract...
FPA welcomes new Senate fintech committee
The Financial Planning Association of Australia has backed the establishment of ...
AFCA to name and shame from October
The Australian Financial Complaints Authority (AFCA) will begin naming firms in ...