WHK shuns vertical integration

financial advice FOFA BT IOOF

15 November 2011
| By Chris Kennedy |
image
image
expand image

The Future of Financial Advice (FOFA) reforms will mean advice groups will either move down the vertical integration path towards a hybrid model or focus purely on the professional advice model, according to WHK head of financial services John Cowan.

FOFA changes have helped WHK focus its business model from a group of disparate businesses. WHK will now focus purely on a financial advice model rather than going down the increasingly popular vertical integration path, he said.

The vertically integrated model has been favoured by some larger groups such as Count and DKN, who were headed down that path even before their moves to align with CBA and IOOF respectively. The vertically integrated or institutional financial advice model will suit those clients who do not wish to pay a "professional" fee for advice and hope to receive financial advice for $300, Cowan said.

The sales of groups like DKN and Count to institutions will also provide an opportunity for the remaining non-aligned groups such as WHK to pick up quality advisers who do not wish to work under the institutional model, he said.

WHK is looking at a measured approach to growth, and would be open to conversations with both individual advisers and practices that would be a cultural fit for the group, he said.

WHK now uses a badged wrap platform from BT that does not feature volume rebates. This agreement is a clear sign of the group's FOFA readiness and commitment to lower fees, Cowan said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 6 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month 1 week ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 5 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

1 week ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

1 week ago