Some dealer groups trying to 'destabilise' Genesys: Kirk
Managing director Greg Kirk has accused rival dealer groups of deliberately trying to destabilise Genesys in order to attract advisers to their own groups.
Kirk told Money Management that continued speculation in the media about unhappiness among member advisers is “really just a matter of other dealer groups tying to destabilise our business”.
Asked why dealer groups would be intent on doing this, Kirk said “people are competitive in our industry and they are trying to recruit advisers".
He would not comment on which specific dealer groups were involved except to say he has been “reading headlines predicting our impending collapse for nearly three years”.
Kirk said he was not aware of any major unhappiness among advisers within the group or of the impending departure of any advisers.
“We’ve just returned from a conference with our leading member practices and we did not see any level of dissatisfaction coming through in our conversations with them.
“Likewise, our national advisory council has endorsed the relationship we have with it and its members."
At the same time, Kirk did not deny there was a revolt by members when Genesys’ management announced at its annual conference this year that it had scrapped its private clients and technical services department.
It came to a head when between 70 and 80 per cent of advisers responded to a call by Genesys’ management for a show of hands by those who used the service.
The assembled advisers then subsequently sent a demand to Genesys’ management to reinstate the services — which was rejected.
Kirk denied a suggestion that Genesys planners remained “angry and disappointed” over alleged ongoing cuts to the dealer group's non-aligned service model since it merged with AXA late last year.
Kirk denied that Genesys had reduced adviser services by scrapping private client and technical services, claiming that “an alternative proposition had been provided”.
“We’ve moved on and are providing technical service through other means, including by leveraging the capabilities of AXA, our parent."
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
