Financial planning practice Multiforte Financial Services has left Axa Asia Pacific-owned dealer group Charter Financial Planning as per 1 July, saying its bespoke portfolios were ill-suited to an institutional dealer group.
Despite having good experiences with Charter, the firm felt it was restrained in delivering advice effectively."Because of our process we had to go outside the APL [approved product list]. This was never a problem - our advice was always approved, but it was a cumbersome process," Multiforte principal Tony Clarke said.
Clarke said the firm's focus on customised portfolios did not sit well in a scale-driven environment.
"You have to systemise things in a large institution. For us, a boutique, it is easier to do bespoke portfolios. We build all bespoke portfolios and then back test them - every person has their own," he said.
Also, the practice's flat-fee model and strategic advice services often meant its advice did not include product investment, making it hard to achieve the kind of scale benefits that dealer groups look for, he said.
The Sydney-based practice now operates as an authorised representative of sole financial planning practitioner Nigel Janson of Financial Masterplan.
Clarke also looked at joining an independent dealer group, but said this model caused the same sort of issues that come with large-scale operations.
"The sorts of services they offer are not of value to us," he said.
Clarke, a former investment executive with the NRMA, runs Multiforte alongside principal Kate McCallum and three support staff.
