Non-aligned dealer group goes off platform

Non-aligned dealer group goes off platform

A dealer group established by former Professional Investment Services advisers in 2012 has “turned its back” on platform and wrap structures, seeing benefits in managed discretionary accounts.

GPS Wealth has “slashed investment fees in half” since striking a deal with MDA provider managedaccounts.com.au to implement an MDA structure for its clients.

“The MDA is only for new money at this stage but we’ll be seriously considering the service for existing clients as part of the review process,” said GPS Wealth managing director Grahame Evans, formerly general manager of PIS.

“Platforms and managed funds are still very expensive and inflexible, and our philosophy is to add value through asset allocation and by keeping fees down and preventing clients from making silly, emotional investment decisions.

“The future of financial planning is one where investments are held in the investor’s name, costs are minimised by using passive investments where suitable and advisers better educate their clients about behavioural finance.”

The 50 adviser-strong dealer group, formed in 2012 by former PIS advisers Greg Holman and Rob McGregor, says the implementation of MDAs has allowed the firm to build “tailored direct portfolios based on clients’ individual objectives and tax situation”.

GPS Wealth has signalled its intention to move 60 per cent of existing funds under advice into an MDA structure over coming years.

Non-aligned dealer group goes off platform
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