Insignia forecasts stabilisation in adviser exits
Insignia Financial has reported a downturn in funds under management and administration of $8.6 billion as a result of market volatility.
Announcing its quarterly results for the three months to 31 March, 2022 to the Australian Securities Exchange (ASX), the firm said group funds under management and administration (FUMA) was down 2.7% to $317 billion.
This was the result of unfavourable market movements as well as institutional outflows.
There were 1,682 advisers in the Insignia network which was a decline of 83 advisers, divided between 49 from the self-employed space and 32 from the self-licensed channel.
Departures from the self-employed channel were typically smaller structures and reflected the reset of management fees charged by Insignia to self-employed advisers.
It said it expected adviser numbers to stabilise from 1 July, 2022 but said it expected a further 30 adviser departures between now and July.
This included the Bridges and MLC Advice businesses to be integrated under a refreshed Bridges advice model.
Insignia chief executive, Renato Mota, said: “The next phase of our advice simplification will see us bringing two of our employed advice businesses together, combining the strength of both businesses and unifying them under one brand and culture. This is a key step in our transformation to ensure we have a sustainable and accessible advice business into the future”.
AUTHOR
Laura Dew
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
