Five more practices for Magnitude
An additional five financial planning practices are set to join Magnitude Financial Planning, the dealer group owned by BT Financial Group, in a move that will boost its level of funds under administration (FUA) by $500 million.
The collection of new practices will be incorporated under the Magnitude umbrella over the next three months, and have been recruited from across two states, and from both regional and metropolitan areas.
The dealer group will boast a network of 16 financial planning practices, with approximately 30 advisers across four states once the five practices have been officially signed up.
The news coincides with Magnitude’s achievement in passing the $1 billion in FUA milestone just a year after recruiting its first practice, Qube Financial.
Magnitude chief executive Mark Spiers said the fact the group had attained this significant level of FUA represented an endorsement of the value proposition the organisation offered planning practices looking towards expansion, rather than the accomplishment of any growth target or key performance indicator the dealer group had set itself.
“Our target was never based on FUA, it was based on getting the right quality and calibre of practices. We knew when we began, and we know now, that we had a very compelling proposition to a particular segment of the market, so if you’re an established practice seeking to grow, we have a purpose built set of tools, capabilities and the environment to support that practice realising its growth ambitions,” he explained.
Spiers does, however, recognise the importance of the milestone in terms of the market credibility Magnitude now has.
“It’s now no longer about who’s Magnitude. All the cynics and cynicism has moved away, and what has changed is our interaction with the market and our acceptance and acknowledgement within the industry,” he said.
“You can have breakaway [groups] of advisers of $1 billion, but to start with no one and build to that level shows we’ve been successful by anyone’s numbers. That’s why we’re very pleased with where we’ve got to, but with modest hubris,” Spiers added.
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