Wealth Today saw drop in new business
Wealth Today has announced it experienced a reduction in new business revenue for many advisers between February and May due to the economic uncertainty and downturn from the pandemic, the firm’s parent company, WT Financial Group said in the announcement made to the Australian Securities Exchange (ASX).
The firm said that during this time advisers struggled with uncertainty in their own businesses and lives and, at the same time, they had dealt with the many issues arising for their existing clients.
“Across February to April 2020 Wealth Today experienced a general reduction in inbound inquiry from new advisers and saw a number of advisers who has been in discussions to join it defer their moves, impacting FY2020 EBITDA by an estimated $250,000,” the firm said in an announcement.
However, most advisers had managed to adapt to a new situation and recover by April, with new business activity increasing considerably across June and July 2020, and the group’s B2C operations recorded record revenue in these months.
The resulting impact on the group’s February to May revenue resulted in an estimated impact on EBITDA around $150,000 for FY2020, WT Financial Group said.
“Whilst its growth trajectory has been impacted and will continue to be impacted by the pandemic, the company anticipates continued growth at or around that experienced across FY2020, thanks in large part to the ongoing industry disruption as institutional licenses exit market and advisers continue to seek non-aligned dealer group to join,” the firm said.
AUTHOR
Oksana Patron
Recommended for you
Following an extraordinary general meeting today, Dixon Advisory parent company E&P Financial Group’s shareholders have voted on its proposed delisting from the ASX.
While overall financial adviser numbers have dipped below 15,500 this week, Rhombus Advisory is experiencing growth and approaching 500 advisers in its ranks.
Iress’ Xplan continues to dominate the financial planning software market with a multitude of uses, according to Netwealth research, despite newer players battling for a piece of the pie.
ASIC has shared the percentage of breach reports related to financial advice in FY24, noting increased reporting by smaller AFSLs.
