Independence pays dividends for Wealthsure
Being one of the biggest alternatives to the bank-backed dealer groups and offering an established fee-for-service model has been at the core of Wealthsure becoming the fastest-growing dealer group by adviser numbers in the Money Management 2010 Top 100 Dealer Group survey.
Wealthsure’s adviser numbers jumped by 102 in the last year (up to 395 from 293) and this had been achieved without any active marketing, according to the group’s chief executive, Darren Pawski.
“It’s probably the best year we’ve had, which is surprising,” he said.
Pawski attributed the growth to the hiring of three practice managers the year before, which improved Wealthsure’s internal offering, and he hoped to continue momentum with a target of another 100 advisers over the next year.
Wealthsure has enjoyed impressive continuous growth over the last five years, effectively quadrupling its adviser numbers since 2005. It is one of the largest independently owned groups in Australia and experienced its biggest jumps in adviser numbers over the last two years. This growth might surprise some considering fears the pressures of the global financial crisis and further regulation would cause advisers to flock to the banks or larger institutionally aligned dealer groups.
Pawski said he believed Wealthsure was attractive for many advisers simply because it was one of the biggest alternatives to the banks.
“It comes down to why they would go to the banks,” he said. “It comes down to strength – we are a profitable, large, independently owned group that already generates the majority of its income from fee-for-service anyway.
“I think the industry needs solid, independently owned groups in this marketplace to keep everything balanced. Maintaining our independence is giving us the edge.”
Pawski added that many of the advisers Wealthsure picked up actually came from the banks, dissatisfied with changes to their terms and offerings that resulted in them only getting paid for new business. He said Wealthsure also picked up advisers from groups that were struggling, such as smaller boutiques, as well as advisers from institutionally aligned groups.
Pawski said Wealthsure’s key value propositions are the business support it offers advisers over and above the stock standard dealer group offerings, as well as its soon-to-be-launched private label platform, which is being brought together in conjunction with other independently owned groups.
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