Count key contract reviews near completion
One of the country’s largest financial advice groups, Count Financial, may soon have an all new back-office, with investment research, platform, and advice software contracts all under review.
The group is currently reviewing its investment research contract (currently held by van Eyk Research) and white label platform contract (currently held by BT). The group is also reviewing its financial planning software arrangements and has a tender out for a new contract. Count currently uses an in-house system called Wealth Planner, and is understood to be talking to Iress, Macquarie-owned Coin and Midwinter Financial Services about the provision of software solutions. The group is yet to make a decision on that contract but named it as one its key short-term priorities in its annual report, posted yesterday on the Australian Securities Exchange.
Chief executive Andrew Gale said the group is hoping the new software would create greater efficiencies in the advice process and “greater value-add in the review process”.
Count is anticipating one-off expenses in the 2010-11 financial year relating to the implementation of the new software platform, as well as its changes to its platform arrangements in response to potential regulatory headwinds.
Gale said Count’s platform review was “close to being finalised” and would see the group “well positioned for the years ahead”.
Count has indicated for some time it may need to amend its current arrangements to allow it to be the owner of its preferred platforms, outsourcing the administration, to allow it to continue to receive margin from the products. In the annual report, Count Financial executive chairman Barry Lambert foreshadowed a need to retain dividends to allow the company to make the transition to product manufacturer.
With regards to its research process, the group reinforced its reliance on external research houses, supported by its in-house investment committee. Gale told investors Count’s research process had “withstood the harsh market conditions of the last few years and avoided the major investment collapses”.
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