MDS Financial closes planning arm Cube Financial
Sydney financial services group MDS Financial has closed its wholly-owned financial planning arm, Cube Financial, as part of a strategic decision to focus on its stockbroking operations.
MDS Financial chief operating officer Damian Isbister confirmed Cube Financial, which had three planners, a paraplanner and administration staff, was “not strategic to our business”.
“We’ve embarked on more of a broking focus than a financial planning focus over the past 12 months, and we have wound down our planning operation to the extent we don’t provide [financial planning] advice anymore.”
Isbister said while the entity Cube Financial still exists as a stock broking department, “there is nothing” by way of the provision of financial planning.
Also over the past 12 months, MDS Financial has moved to smaller offices in Sydney and the Gold Coast, eliminating $240,000 a year in costs, and reduced its staff complement from 38 to 27, he said.
“A decision was made to look at our expenses more closely in a tough market and eliminate them from the business so when there is a turnaround, we will be in a good, solid position.”
MDS Financial offers online stockbroker Trader Dealer, and also sells charting analysis software, which is its major revenue source.
Recommended for you
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments for investments.
Inefficient data processes and systems mean advisers are spending over half of their time on product implementation and administration at the expense of clients, according to research.
With the regulator announcing its enforcement focus for 2025 last week, law firm Hall & Wilcox examines the areas which have dropped down the list in priority for the regulator.
