Flexibility: the key to Capstone’s start-up success
From almost a standing start,Capstone Financial Planninghas grown rapidly to earn a place on our list of Fastest Growing Independent Dealers.
Established in July 2002, Capstone has set out to be “recognised as the most professional medium-sized advice group in Australia”, according to Capstone managing director Grant O’Riley.
O’Riley says that from the outset, the group has focused on offering a very flexible model to advisers in terms of products, platforms and software, combined with a full background support package covering marketing, practice management, compliance and research.
“Our vision is to allow the financial planning practices to be autonomous but within a strongly supported environment,” he says.
This flexibility extends to adviser remuneration, with planners having the option of a fee or commission package.
“We either educate planners in how to become a fee-based adviser or how to be very transparent if they are working on commission.”
The firm has received a large number of enquiries from practices across Australia, with many attracted by the group’s independence.
This has also enabled the group to establish relationships with a broad range of fund managers, with O’Riley emphasising that “in achieving scale, we don’t take handouts from any fund managers”.
However, O’Riley says the group doesn’t take on every practice that comes knocking.
“We find some don’t suit our profile, and we look for quality, not quantity.”
Capstone still has some aggressive growth targets.
In the 2003- 2004 financial year, the group intends to reach 45 to 50 advisers operating in three states (with a Western Australian office in the process of opening), and approximately $1 billion in funds under advice.
The group’s long-term goal is to reach $1.5 billion to $2 billion under advice with 80 practices nationally.
O’Riley believes that successful growth comes back to providing the right tools for advisers in terms of product, platforms and software, competitive remuneration, and something a little harder to quantify.
“We wanted to bring some of the old world back into the business — a lot of caring and a lot of relationship focus.”
AUTHOR
Freya Purnell
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