Spark Financial commences profit-for-purpose operations
From 1 July, national dealer group Spark Financial will officially begin operating as a profit-for-purpose organisation, donating 100 per cent of its profits to nominated charity partners.
Spark Financial entered into binding terms to become Australia’s first social business dealer group in December last year.
It will provide several mechanisms allowing its advisers to participate in initiatives that positively impact their local communities and drive meaningful change, including those relating to financial hardship, financial abuse, and mental health issues.
“The Spark Legacy Program is testament to the support of our executive, our advisors and our partners who want to contribute to our society in a co-ordinated, structured manner,” said director and chief investment officer, Andrew Coloretti.
“Transitioning a business model from for-profit to profit-for-purpose is no easy feat and not a decision the executive has taken lightly, but we’re proud to be changing direction in such a way.
“It has been a trying few years for many people, punctuated by COVID lockdowns and the resulting economic uncertainty.”
Coloretti noted the opportunity to improve the financial well-being of young Australians has been embraced by Spark’s network.
“We are determined to stand for something and make a real, tangible difference to the lives of people who have a low level of financial literacy or little access to financial literacy education,” Coloretti said.
“We’re in a unique position to shift perceptions and reframe society’s view of money to be well beyond just the fortunate few.”
Under the profit-for-purpose model, the Spark Legacy Program agrees to support financial literacy and well-being by way of comprehensible products, and services, and tools and resources that can facilitate understanding and decision making about financial products and services.
Coloretti explained the new model would assist young and vulnerable Australians in being better informed about where and how to invest.
He added: “It’s an opportune time for the broader financial services industry to unite and consider both its individual and collective contributions to the common good.”
The Spark Legacy Program will also comprise charity fund, Spark Hope, which will be overseen and governed by an independent trustee, and become a mechanism for Spark advisers to contribute towards the program’s initiatives.
Spark Financial Group has 80 financial advisers within its network, who collectively manage more than $1.5 billion in funds under management.
AUTHOR
Rhea Nath
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.
