Fiducian to take on the big end of town
Fiducian has unveiled ambitious plans to build one of Australia’s biggest financial planning groups.
The financial services group has applied for a separate dealer's licence to complement the securities licence it holds for Fiducian Portfolio Services.
Fiducian managing director Indy Singh says the group hopes to recruit up to 150 planners in the next two years, making Fiducian one of the 25 biggest dealer groups in the country on present numbers.
"But we can probably do it sooner than that," he says.
Singh says the group will adopt an aggressive campaign to build adviser numbers quickly. He is in discussions with a number of dealer groups with a view to acquisition, using the $22 million war chest from the group's listing two months ago.
"But we will only buy if the price is right," Singh says.
"Even without a purchase we can still hit our targets by recruiting high quality, ethical advisers."
The move to set up its own dealer group is a major change in direction for Fiducian. While the group already has six proper authority holders under the portfolio services licence, most of the business has been built through independent financial planning groups who have supported the Fiducian wrap account and are now some of the group's biggest shareholders.
"This is just another arm of the business," Singh says.
"We built the business quickly through independent dealer groups and that business will continue to grow. This business simply complements thast business and has the full support of the dealer groups involved in the Fiducian business."
Singh's efforts to woo planners involves a three pronged attack.
"Firstly our dealer splits are among the most competitive in the industry," he says.
"Secondly we are offering one of the best servicing arrangement around adding things like financing options for expansion to the usual list of technical, research, compliance, software and training. Thirdly, they will also participate in Fiducian's pioneering shareholder options scheme."
Once the planners have been recruited, Singh estimates Fiducian will generate up to $1 billion each year in new business. Its wrap account currently has about $465 million under management.
Other plans on the Fiducian drawing board include the launch of a financial planning software business which would market the software being developed by Fiducian to the financial planning industry. It is also investigating a separate division to manage a number of joint venture projects currently under discussion.
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.
