South Australian group lures dissatisfied IFAs
South Australian-based MGF Consulting Group has launched a new business aimed at accommodating independent financial advisers (IFAs) who believe they are not receiving enough support from their dealer groups.
According to MGF principal Max Franchitto, the new business will focus on the aggregation of small IFA practices that are not being serviced adequately by their current dealer group to the personal level expected by the IFA principal.
“Far too many smaller operators are not getting the support they require from their dealer group, this is simply justified due to size economics,” he said.
However, Franchitto said that while these smaller firms might not be cost-effective from a dealer group management perspective, they were still deserving of business development support and this was something MGF Financial Management would deliver.
He said MGF Financial Management would use its ‘Corporate Authorised Representative’ status to aggregate smaller IFAs in the South Australian, market and then further a field in 2007-08.
Franchitto said the first practice to enter into the new model in South Australia was Reach Planning Solutions, while a number of other businesses were in discussions with a view to joining in early 2007.
AUTHOR
Mike Taylor
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