Platform provider Hub24 has attributed its first full-year profit to the growth in independent and non-bank adviser numbers, and expects the shift away from institutionally-owned advice to continue.
In its annual report for the 2016-17 financial year, the company recorded a net profit after tax of $3.9 million, with funds under administration growing 66 per cent in the 12 months to 30 June 2017 to $5.5 billion.
Hub24 managing director Andrew Alcock and chairman Bruce Higgins noted this growth was achieved “in an environment where the dominant incumbents are rethinking their wealth management business models”.
“Across Australia an increasing number of advisers are choosing to become self-licensed or join more flexible dealer groups as the move away from institutionally owned licensing models,” the company said.
“Our subsidiary Paragem has recruited an additional five of these advice practices during the second half of the 2017 financial year and our group is well positioned to capitalise on this trend with advice businesses seeing greater choice, transparency and engagement with new technology platforms.”
The company also said it intends to grow its funds under administration to $12 billion in the coming three years, and expects the changes in the wealth management industry will provide “opportunities within and beyond” its traditional market segments.
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