New co-operative to aid non-aligned advisers

By Craig Phillips

ADVICE group Benwest Investment Services has teamed up with Lifestyle Financial to create the Boutique Group, a new co-operative offering back-office services to small independent dealer firms.

Boutique Financial Services (BFS), which is the subsidiary of the new entity, has also formed a strategic alliance with former Sealcorp head Ian Knox’s recently launched business, Paragem, to access dealer support services and multiple platforms. Paragem will also provide practice management support through its partnership with suppliers in the industry.

Benwest head and now BFS managing director Tony Bennett says the business is targeting independent dealer groups with between five and 50 advisers, and will principally operate as a back-office services company.

“The move was driven by a desire to contain and drive down escalating industry costs for small Australian Financial Services’ Licensees (AFSL) who wish to remain independent from institutional ownership… In many respects, it has [all] the hallmarks and consumer benefits of remutualisation,” Bennett says.

The ownership structure of the Boutique Group allows sign-up members to take an equity stake in the consortium through the constitutional format of the co-operative.

Meanwhile, Knox says his new business is also involved in a project to resolve some of the software issues that advisers face.

“Paragem has a vision of open technology and is currently working toward the establishment of a desktop, which enables financial planning firms to handle clients’ affairs through more than one platform via a single point,” he says.

As for Lifestyle Financial, it was formerly the dealer firm MPG, but no longer offers advice because it did not seek an AFSL.