Inside the Dealers: Winchcombe Carson ready to stand alone

Since the appointment of Winchcombe Carson’s first managing director four months ago, the Melbourne financial planning group has undergone a big shake-up.

The group, part of IOOF, is being positioned as a separate operating entity. This underlines the appointment of a managing director rather than general manager, which was the title of the previous holders of the top position within the group.

Managing director Grant O'Riley says the last four months since his appointment, have been a period of review and restructuring.

"As managing director I have been allowed to go further with the review (by the IOOF board) and this change of focus, structure and the long-term financial viability of the group," he says.

O'Riley admits the group had stagnated and had not been performing to capacity, despite its well-known brand in the financial services industry.

"With the restructure we have put a lot of emphasis on the business and the path it needs to take to become a stand-alone dealer group," O'Riley says.

The focus now is to add-value to the advisers working for Winchcombe. "If we get

that right, we will become a leading dealer group," he says.

The aim is to be in the top 25 through increases in adviser numbers and funds under administration.

In the last three months the group has put on 15 new advisers and plans to be at 100 advisers within the next month. O'Riley has not ruled out acquisitions so long as any group joining Winchcombe is committed to working within an independent group.

He also sees expansion by acquisition as a way of bringing economies of scale to the group.

"The key to any acquisitions and the way ahead is through value-adding," O'Riley says.

Value-adding is achieved by taking a business development focus with coaching advisers through quality lead-generation programs.

The dealer group also sees more business coming from its strong links with the union movement where it acts as financial planners to members of several industry superannuation funds. These links include organisations like the Queensland Police Credit Union. Other links include members of dairy farmer co-operatives who need advice with what to do with the industry deregulation payments.

Another revamp of Winchcombe has seen the internal team of researchers abolished and replaced by a single manager who oversees external research sources. The dealer group has now aligned itself more strongly with van Eyk.

The Winchcombe branding is being supported for the first time by a dedicated marketing team within the group, says O'Riley. In some cases this will mean Winchcombe becomes the prominent brand for a dealer. If the dealer operates at a remote location, their own name may be used more strongly.

The group has always been stronger on the eastern seaboard of Australia, but is now expanding into Adelaide and Perth.

To support the advisers, the dealer group offers the traditional package of training, compliance and risk support.

Training is handled on a continuing basis and all the advisers will be encouraged to work towards CFP status by a required date, says O'Riley.

A further part of the training program is succession planning for advisers. With a group as old as Winchcombe, advisers are now retiring and their business is being sold to new advisers wishing to join the independent group.

Advisers joining Winchcombe are subject to due diligence by the state manager. O'Riley says they are looking for people with at least DFP 4 education level.

"They must have the vision to complete DFP 8, and 95 per cent of our current advisers are working towards CFP status," he says.

"We have a strong training regime and that includes business coaching as we want them to run a business as well as be a planner."

There are usually between six to eight professional development days a year for advisers as well as a national conference. This year's five-day conference is being held in Singapore this month.

Compliance is undertaken internally as Winchcombe has its own compliance manager.

The advisers have two checks a year and problems are dealt with through more education.

Remuneration of advisers varies, depending if they are based in a main state office or operating on their own.

"External advisers incur their own costs, so different support and remuneration packages are provided for them," O'Riley says.

Leads for the advisers come from the existing clients such as superannuation funds. IOOF, with its mutual membership, also provides a certain amount of business. O'Riley says Winchcombe puts 20 per cent of its business with IOOF and adds that figure is growing.

The future of Winchcombe Carson is one of aggressive growth, says O'Riley.

"We are looking to have a strong market profile, a professional and reliable image, and to be seen as a group that adds value to its advisers' business," he says.

Vital statistics

Advisers: 95

Funds under administration: $1.6 billion

Ownership: IOOF

Founded: 1979

Key figures: Grant O'Riley, managing director

Master trust: IOOF Max Portfolio Service, Flexiplan, Navigator

Research: Internal, van Eyk, William M Mercer, FPI

Last conference: Hayman Island