In revealing its financials on Thursday, Insignia Financial announced the creation of a new division which forms a part of its new strategy aimed at harnessing the opportunities presented by the widespread shift towards enhancing retirement conditions amid an ageing population.
“The 2024 financial year marks the final year of the three-year MLC separation and integration program and over this time, Insignia Financial has continued its strong track record of delivering on strategic initiatives, including accelerated delivery of synergy benefits, ahead of the original three-year plan,” the company said in an ASX filing.
“These achievements now provide the opportunity for a strategic refresh, allowing Insignia Financial to prioritise and focus with greater clarity on unlocking the full opportunities of the MLC acquisition through finalising separation and integration, while directing investment to its key areas of competitive advantage, against a backdrop of a growing superannuation pool and the largest intergenerational transfer of wealth in history.”
To capture these opportunities, Insignia said its new strategy is made up of four pillars, one of which is “improving our clients’ financial wellbeing”.
As such, the company said the creation of a new client wellbeing division will “enable greater focus on pursuing opportunities to provide financial help, guidance, and advice through all stages of life, and improve client engagement”.
“The new division will bring together teams who currently play a significant role in shaping the client experience and will include our professional services advice teams, Bridges and Shadforth. It will be led by the chief client officer, a newly created executive role which will report to the CEO,” Insignia said.
Also, among Insignia’s four strategic pillars is a pledge to deepen its partnership with advisers.
Elaborating further on this pillar, the company said it plans to “focus on adviser productivity to drive profitability”.
Ahead of 2024, Insignia said its priorities include “advice efficiency and restructure” alongside “pre-retirement advice and retention”.
The company unveiled a new financial advice operating model in July. At the time, it explained that the model would work as a new partnership ownership model for self-employed licensees, comprising RI Advice Group (RI), Consultum Financial Advisers (Consultum), and TenFifty.
While this new business does not have a brand name locked in, it is being developed under the working name of Advice Services Co, or ASC.
“ASC represents the ambition to create Australia’s largest adviser-owned licensee group, positioning it to capitalise on the dynamic self-employed advice market with the support of Insignia Financial,” Insignia said.
“ASC will operate with independent management, oversight and governance, with input from both Insignia Financial as well as key advice practice representatives.”
On Thursday, Insignia reiterated that ASC will be owned and run for advisers, with its “backing and support”.
The company boasts a total of 1,413 advisers across its network, which comprised 461 practices.
