Announcing its annual financial results, PIS parent company Centrepoint Alliance said the number of adviser practices in the network decreased from 701 to 533 in the 2013 financial year.
In its previous annual reports it listed its adviser growth rate as zero per cent in the 2012 financial year and as 2 per cent in 2011.
PIS said the outflow of advisers was the result of rationalisation and changes to the industry following increases to regulation and compliance through regulatory changes including Future of Financial Advice changes.
PIS also blamed the impact of large institutions “increasing their domination of the industry by acquiring smaller businesses and offering attractive incentives for advisers to move to them.”
Centrepoint managing director John de Zwart said “the reduction in advisers seen over the last three years has ceased and we are building a solid platform for future growth.”
The PIS adviser network was the only non-profitable business unit for Centrepoint with the group still suffering the effects of poor advice provided between 2004 and 2010, with a $10.0 million loss through provisioning for client claims for poor advice. This was still down on the $16.7 million in client claims in the prior year.
Centrepoint said its revenues were boosted by an increase in the number of independent advisers outside its network taking up the use of its platforms. Ventura and All Star funds management and Investment Diversity platforms grew revenues by 16 per cent over the year.
As an Adviser that has been involved in Bailing out clients of PIS that were invested in Chartwell/Geelong whose Directors are now in jail, I find it very sad that PIS did not reference check or do any due diligence on these two advisers that they appointed.
What a mess ,,
As an accountant that has worked closely with a PIS adviser for some years, I must say I am amused by the comments relating to adviser numbers. I, as do many in the network who look for more than mere adviser numbers as a basis for opinion, welcome the drop in ‘headline adviser numbers’. While the group has certainly lost some good advisers to institutional-linked offers, many of the numbers often referred to are PIS staff who have moved on, practice support staff, accountants not providing advice (I resigned my own for this reason) or advisers many are happy to see exit due to not fitting into the improved quality framework.
The group has significantly improved the quality of its personel, and in my experience boast one of the strongest and most capable advice support teams of any licence. The market needs a sizeable IFA offer, and PIS still provides this. I hope the ‘refurbishment’ continues.
Every PIS advisor i know has either left or is leaving. PIS are finished in many peoples eyes. The ship is sinking!
To lose nearly 200 advisers in the last 12 months, after similiar numbers year on year whilst facing significant claims, does not too me indicate a group in growth phase!! Hence the comical nature of this article.
Not rushing out to buy shares in it! PS Agree with the SMSF bubble.
I don’t think we ought to be laughing or sledging other dealer groups and advisers for past advice, most of it pre GFC. The whole finance industry was basking in glory back then…banks, fund managers, margin lenders and ratings agencies all raking in the easy revenue.
We ought to be discussing the way forward to ensure another disaster doesn’t happen….like the geared up SMSF property bubble that’s happening as I type.
Funniest thing I have read all day!
Last’s week announcement around Slater and Gordon taking on PIS for poor advice, on the back of yet another agribusiness failure.
Wasnt it only a couple of weeks prior to that it was revealed that they lost a massive number of advisers over the previous year?
This week apparently that has all changed and advisers are flocking to come back! Has obviously been a very productive week.
Got to be kidding me -right?