A drop in adviser numbers has seen revenue for Centrepoint Alliance’s wealth management arm decline by 10 per cent from the previous financial year.
While the reduction in revenue was offset by a decline in costs to the business, Centrepoint listed advisers as one of the main risks to the company in future.
Centrepoint said in a profit announcement on the ASX website that the wealth management segment of the company is dependent on revenue generated from financial advisers.
“Considerable effort is being made to develop the advice business which will aid retention of existing financial advisers and attract external advisers to the group,” said Centrepoint.
The group said declining adviser numbers also impacted growth in funds under management, funds under administration and funds under advice.
However, increased support for in-house solutions by advisers still saw flows improve.
Despite the reduction in advisers, the group still managed to recover from its $7.8 million loss last year, with profits increasing 142 per cent to $3.3 million.
Centrepoint Alliance managing director John de Zwart said the positive results and business growth were attributable to the strength and experience of its team, improvements in adviser systems and professional development “underpinning its move to a more client-centric culture”.
SUBSCRIBE TO THE IFA DAILY BULLETIN
12 Dec 2017AZNGA acquires Henderson MaxwellBy Aleks Vickovich
12 Dec 2017Zurich-ANZ deal shows ‘commitment to advice’By Staff Reporter
11 Dec 2017Insurance engagement driven by advisersBy Jessica Yun
11 Dec 2017Kaplan pushes for new CPD regimeBy Staff Reporter
11 Dec 2017AAT upholds adviser ban after successful appealBy Killian Plastow
11 Dec 2017Senate approves AFCA billBy Annie Kane
- view all