The new dealer group, named Wealth Market, will be led by former Professional Investment Services regional manager Jason Powell.
Mr Powell was the regional manager of PIS covering NSW, Victoria and Tasmania between October 2012 and March 2014.
Former State Super Financial Services manager for advice and professional standards Steven Quine will head up compliance and risk at Wealth Market, and former Citigroup research manager Andrew Ash will be head of research.
Wealth Market is already advertising for financial planners to join the group, with a LinkedIn job advertisement describing an “exciting opportunity for an experienced financial planner to join Wealth Market in Sydney”.
The advertisement says the financial planner in question will service a “massive referral network from Ray White and Loan Market”.
The successful applicant will need a “solid sales background” as well as strong working knowledge of “all financial planning areas”.
According to the advertisement, Wealth Market is “a newly formed Financial Planning dealership that aims to change the way financial advice is perceived by everyday Australians”.
The Wealth Market website is up and running, with a note on the front page reading, “An exciting new venture in financial planning is just around the corner – launching soon!”
Loan Market’s decision to enter the wealth management space follows in the footsteps of Mortgage Choice, which launched a financial planning dealer group in late 2012.
[quote name=”Wildcat”]TH, what has the Sydney property market returned in the 10 years to 2014 above inflation?
[/quote]
2-3%. Pick a better property.
What have your manged funds done in the last 10 years..
Dollar for dollar not percentages of a low base.
My point is both can work and do work. You’ve been brainwashed if you think the only solution is listed, funds, etf or shares.
And i’ll think you’ll find many business still have a big fat trail book.. Recurring insurance comms for one and those good old investment legacy products with the 0.3 -0.5 built in.
So if a client wants a property you will tell them they are wrong its a bad investment… Then sell them an index fund.. Well done your a genius.
How about advice that suits there goal, objectives and situation…
Coronis Realty in QLD has been trying to set up an FP arm for a while too.
As already mentioned, how often will we see “property is the best investment” coming out of these. Because of course Property prices always go up – Ben Bernanke told us that
But why is property any less conflicted than all the managed funds.
Property is a good investment class. Always has been always will be.
Just cause adviser cant see a traditional way to make money (Trail, entry Fee) from product flogging they see it as a bad thing.
It is just another strategy. Adviser doesn’t need to be involved at all in the prop transaction but can still give advice on structure strategy, risks etc etc.
You know what we are supposed to do….
Obviously there could be conflicts in Ray White situation but a good ethical adviser will not write the advice if it is bad or conflicted advice.
No doubt the “best” advice will quite often involve buying property – “I just happen to know an agent you can deal with”.
The only analysis will be whether they can afford it from their own funds or do they “need” to set up an SMSF to do it?
Interesting way of getting around the abolition of commissions – particularly in regard to gearing.
No doubt the next step is for car dealers to start setting up “financial planning” divisions.
So a licencee controlling a distribution network APL – nothing new here
Tend to agree Nigel. I’m seeing an emerging trend for employed advice channels lately with the minimum entry requirements of RG146…now let me guess, could it have something to do with selling the employer’s product line and not much else?
They’ll get planner numbers easy enough. Just get the existing agents to knock over a quick flick and tick RG 146 and hey presto instant financial planner base. This would be a good case to look at increased education requirements for new entrants or it’s wild west time with property for all at never to be repeated prices. Of course it’s investment grade it just needs to TLC and a commission paid.
JM…cant see the bit where it says comprehensive risk cover. I’ll look harder for it shall I at the bottom of the garden where the pixies reside.
How could this arrangement possibly be described as financial planning?? Sounds more like property flogging!?
Settle Down..
I see nothing wrong with clients seeing a Financial Adviser to ensure they have proper comprehensive risk cover in place, at the time that they commit themselves to the largest debt in their lives.
Nothing at all wrong with that.
All I can say is ‘ god help us’. This really is the last thing we need.
I actually don’t have a problem so long as they are professional, act in the clients best interests (which is obviously a legal obligation)and seek solid life benefiting solutions for clients.
My concern is the business culture is driven by sales commission and rent roll commission.
How this sales culture is inoculated from the advice arm of the business is my biggest concern. That and they want someone with “solid sales background” means they may struggle with the concept of the ethical professional.
If they pull it off ethically good luck to them and congratulations. How they provide diversified and unbiased advice?
Concerns definitely abound.
Just what we need – can visualise the weekly sales meetings – property salespeople v. the financial planner – what ? no first interview sale ? that was my qualified lead and commission gone…
Isn’t asking for a solid sales background illegal under FoFA?
“But you can afford that property……….in your super. Let me show you how!” CLICK CLICK BOOM.
Hmmmmm, can anyone else hear the alarm bells going off?
Just wait for something to go wrong and we will all be tarred with the same brush yet again.
Leveraged property anyone? Everyone?
Housing bubble…check.
SMSF trouble…check