Investorfirst’s investment and superannuation platform business, Hub24, has gained two more dealer group partners – Beresfords Financial Planning and Elston Partners.
Further growth is expected in 2012.
“We’ve got some really big [dealer groups] coming through. There is probably about another good three of a reasonable size that we’re interested in,” Investorfirst chief executive Darren Pettiona told InvestorDaily.
The new dealer group partners should be announced in the first half of 2012, Pettiona said.
“Key thing that some of these groups are saying is the ability to participate a bit deeper in the manufacturing process than they have been able to before, so the platform as opposed to just being a pure administration system becomes a tool for them to create longevity and wealth within the practice itself,” he said.
“I think what Hub24 is doing is allowing the adviser and the dealer group to say ‘this is how we want investment to be structured for our clients, so engaging the management and saying if you want our clients’ money, then this is the way you have to work with us’. It’s a real shift in the way people would use platforms.”
With the continued release of draft legislation for the Future of Financial Advice (FOFA) reforms, dealer groups are reviewing their business models, reflecting the increase in enquiries Hub24 has received.
Hub24 will help planners position their business to meet FOFA requirements, particularly in relation to fee transparency and the removal of potential conflicts.
Throughout 2011, Hub24 has been increasing its number of dealer groups and portfolio managers to support its rapidly growing portfolios.
“We’re looking forward to 2012 as a year of consolidation and further growth. Our aim is to help advisers re-engineer their businesses to become both an advisory and a product manufacturer,” Pettonia said.
