Aust Unity signs with IOOF back office
Australian Unity Financial Planning has replaced Garrisons as its back office administrator following a deal being struck with IOOF Funds Management-owned OutScope.
Australian Unity had been using Garrisons for its back office requirements, however the Melbourne-based dealer group was forced to review its options after Garrisons signalled it will soon cease to offer such services.
Australian Unity general manager retail services Travers Stow said the switch was amicable and was driven by “Garrisons indicating to us that they wanted to move out of the outsourcing space”.
The deal with OutScope will see the adviser firm utilise a “comprehensive suite” of the services on offer.
These will include brokerage administration, X-plan software, research and the adviser workbench.
“We are in the process of implementing the (back-office) project with completion schedules for February next year,” Stow said.
OutScope will be used by all 20 advisers in the Australian Unity group. Currently it has one adviser in Brisbane, three in Sydney and the rest in Victoria.
The dealer group has more than $100 million of funds under management although is yet to achieve profitability in its operations.
According to the 2004 annual report Australian Unity’s financial planning operations reported an after-tax loss of $769,000 on revenue of $938,000.
Australian Unity is the first non-IOOF owned dealer group to sign up for OutScope. It is understood IOOF is also competing with another back-office provider for a major Queensland dealer group, although no decision has been made on a winner.
It is the first time in recent years that the two former friendly societies have used each other’s services, having been rivals in the past.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
