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
With regional and rural suburbs exhibiting high spare capacity to invest, Money Management speaks to three regional advisers on the opportunities beyond the major cities and the importance of a strong network.
Platform consolidation is expected to accelerate among financial advisers this year, as software company Finura pinpoints which two platforms are set to be the winners, thanks to this trend.
The software provider has made several appointments in its APAC wealth propositions team, with a focus on driving growth across digital advice, Xplan and strategic partnerships.
The platform has announced it plans to close its Xplore managed discretionary account service in 2026 which holds $2 billion in funds under administration.
