Coreinvest puts cash down to lure advisers
Platformprovider Coreinvest has taken competition in the investment platform market to new heights, offering cash payments to financial planners.
Dealer groups and advisers who use Coreinvest will receive a cash payment of 0.25 per cent of the assets they invest with the group in the first year, with that percentage gradually rising to one per cent over four years.
Alternatively, advisers can opt to have each dollar of revenue they generate matched with one converting share in Coreinvest, which will later transfer into ordinary shares.
Coreinvest managing director John Morrison says part of the reason the platform was created was in response to recent sales of other investment platforms, where he believes the value created by financial planners and their clients failed to be recognised.
Morrison says Coreinvest also urges advisers and their dealer groups to share the cash payments with their clients.
Coreinvest consulted with around 24 licensed dealers while developing the vehicle, and around 100 advisers are currently subscribed to the platform.
Coreinvest was launched earlier this year but was taken off the market for three-and-a-half months while the group developed the new remuneration structure for advisers.
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.