In a statement, IMB Bank said it would sell its financial planning business to Bridges Financial Services effective 1 May 2020.
“The arrangement will see Bridges take ownership of IMBFP’s advice business assets and provide ongoing financial planning and advice to IMB’s members via an exclusive referral arrangement,” IMB Bank said in a statement.
The group’s chief executive, Robert Ryan, said the sale of the business would provide its financial advice clients with a wider range of specialised services than was currently available to them.
“Following a comprehensive review of our options, Bridges was chosen as they offered a compelling financial planning proposition for our clients, supported by a strong presence across our key markets which will benefit our members into the future,” Mr Ryan said.
“Bridges provides financial planning services to approximately 60 per cent of the mutual banking industry and understands and respects the principles of customer-owned banking, and its values and commitment to providing quality specialised financial planning advice closely aligns with ours.”
Bridges CEO Nathan Stanton said the dealer group was delighted to be able to work with one of the country’s largest member-owned organisations and give their clients the opportunity to be able to access comprehensive advice.
“Bridges has grown to become one of Australia’s largest national financial planning and stockbroking organisations and, during this time, has become the partner of choice for the customer-owned banking industry,” Mr Stanton said.
The sale would involve the transfer of IMB Financial Planning clients to Bridges with current advice and investments remaining unchanged, the statement said. Current IMB Financial Planning advisers and administration staff would transition to Bridges.
The two parties said as a result of the sale, “many” client-planner relationships would remain unchanged.
“Financial advice remains an important part of our suite of services and we will refer members seeking financial advice to Bridges under a referral relationship,” Mr Ryan said.
“We remain committed to our purpose of providing simple, authentic member-owned banking, and we believe Bridges will further enhance and enrich our offering.”
Bridges – “mutton dressed up as lamb”; what were IMB thinking? IOOF will force their own products down their throats even though Mota will keep telling the media “they have open architecture” – total BS!
I got out as well Roger; ask anyone that has left that organisation and they will tell you the same; Its toxic!!
Another mutual selling before an ASIC visit for not reviewing clients ???? largest Credit Union has already done the same and ASIC would not act without the names of clients paying for ongoing reviews not being reviewed -unfortunately to much like hard work for ASIC when they are fed enough easy targets.
When I worked at Bridges they operated a quazzi MDA service with had a one page RoA that stated sell NAB and buy CBA and you’d tick a box that stated; because research told us to, as to the reasoning, 6 months later you’d sell CBA and buy NAB. So yeah meets ASIC definition of a service perfectly but…is that a service. I believe this is more of a case of IMB struggling to meet APRA capital adequacy requirements and cashing up assets.
They’ll be sorry. I worked for Bridges and getting out was the best decision I ever made. Of course I had to leave the customers behind and start again, but I’m still pleased I did it.
When did you get out, before the latest bunch of muppets took over?
So salaried adviser ?
I wonder how the quasi hippies who rave about “customer owned banks” feel about being “referred” to IOOF, a listed company and Australia’s second largest vertically integrated advice provider.
Most have been for years now.
IOOF is one the of industries largest clients of CFS, BT Wrap, Macq Wrap and MLC. The term Vertical integration is a nice throw away line for some but the reality is much much different.
Those third party platforms are mostly due to existing arrangements of advice firms they have acquired. Over time, all advisers in the IOOF group will be “encouraged” to switch more and more of their clients’ money into IOOF products and platforms.
It’s why IOOF spruiks “funds under advice” growth as a key metric when reporting to its shareholders. IOOF doesn’t make money from advice fees, so why should that be an important metric? Because it is a lead indicator of future funds flow into IOOF products.
Hey Dave, this article is about Bridges. Of the 4 platforms you quoted, only one of them was on the Bridges APL when I was there and that one (BT) paid a third of their Admin Fee to IOOF (without being disclosed to the clients!). So um …. please remind us how the reality is so much different??
Hmm doesn’t the COE present as unethical, exclusive referral arrangements? I fail to see how different it is between this and a planner saying “go see this broker about your lending needs as they are reputable”…my point being the COE is not worth the paper it was written on. nonsense proffered by the nonsensical
What is a COE? Yet another TLA???
I wonder if they will use the same structure that they brought in that the adviser pays the referral source.
It’s better than making the poor client pay for their own referral through higher product fees.
True but leaves the door open on conflict
So you know this how?
And has the product fees changed in accordance with these changes?
It does, but bcuz Bridges/IOOF are business and not advisers they are not subject to FASEA like we are – such are the loopholes that perpetuate the systemic rotting culture that created this mess to begin with, while us advisers are hung out to dry as the low hanging fruit. Regarding the the payment, it depends on each referral partner, but instead of the fee coming from product now it comes from the SOA fee, and is paid upon successful conversion. So, client signs an SOA, $1500 referral fee gets paid to referral partner. Depending on the referral partners they are building metrics around this also. If this sounds to you like how the Banks worked, you would be correct, although they’re not on that level yet as building societies and mutuals have a different way of thinking, but Bridges are certainly doing their level best to get them there.
I think you will find many many referral partners leaving due to the change. Also there is a way it can be done that the adviser never has to pay that $1,500