How do you run a not-for-profit planning business?
What happens when a mid-sized industry superannuation fund establishes its own financial planning company and is satisfied with running it on a cost-recovery model?
That is what NGS Super has done with recent evidence produced to a Parliamentary Committee revealing that it now employs 17 salaried advisers each servicing about 6,930 members.
NGS Super revealed it owned shares in NGS Financial Planning which it told the House of Representatives Standing Committee on Economics was established for the purpose of providing financial education and advice services to members of the Fund, but did not provide services to other funds or entities.
The bottom line is that NGS Super estimated that the cost of education, general advice and intra-fund advice per member in 2019 was $18.
It said all fees of NGS Financial Planning Pty Ltd, whether direct to member or to the fund, were charged on a cost-recovery basis.
“NGS Financial Planning does not earn a profit,” it said.
The fund’s answers to the Parliamentary committee revealed that the cost of planning services kicked off at $1,015 million in 2015 and had risen to $1,796 million last year.
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
