Up to $10,000 on offer from IOOF but it’s not a ‘sign-on bonus’
It is quite specifically not a “sign on bonus” but MLC Wealth advisers who choose to move across to IOOF Limited will have access to up to $10,000 to help them accommodate the costs of the move.
What is more, IOOF will be undertaking to maintain the comparatively discounted dealer group costs the advisers were paying at MLC Wealth TenFifty, albeit that they will be asked to pay additionally for professional indemnity (PI) insurance and Xplan.
That is the bottom line outlined to Money Management by IOOF’s head of advice, Darren Whereat in response to industry suggestions that IOOF might be offering a “sign on bonus” to the MLC advisers.
Whereat made it clear that the $10,000 on offer was to cover genuine costs up to that amount to help advisers manage the transition to a new licensee including expenditure on new stationery and client communications and that he expected that payment of the amount would be dependent upon the production of appropriate receipts.
On the question of dealer group fees, he said that IOOF would be seeking to deliver some certainty to advisers by maintaining the level they were being asked to pay at TenFifty with the addiotnal cost of PI and Xplan on top of that.
Whereat’s confirmation of IOOF’s position came as other licensees sought lure both IOOF and MLC Wealth advisers with at least one licensee, Countplus, last week announcing the recruitment of a former IOOF practice under its license.
Whereat made clear that what was being offered by IOOF was nothing like the arrangements which had arisen when the Commonwealth Bank acquired Count Financial and found itself battling to retain advisers in the face of an aggressive approach by BT over a decade ago.
At that time six figure sums were on offer to advice practices in the former sign-on or retention payments.
Whereat said that the difference today was that IOOF was simply looking to smooth the process for MLC Advisers and make it easy for them to change licensee.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
