Matrix managing director Rick Di Cristoforo told InvestorDaily the licensee is now charging a dealer service fee through its platform arrangements.
“We’ve identified certain services that Matrix provides that are direct value to clients. We are charging fees for those – that’s live,” he said.
Dealer groups do plenty of work when it comes to platforms, so it is justifiable to charge a fee as long as it is transparent, Mr Di Cristoforo said.
Another plank in the dealer group’s strategy is its partnership with Russell Investments, reported on by InvestorDaily in February.
Under the PartnerShip Funds agreement with Russell, Matrix will offer its clients five actively managed ‘outcome orientated’ portfolios.
Matrix has also undergone a commercial revamp of its business model, Mr Di Cristoforo said.
The revamp will include a “refresh” of the existing structure for current advisers, as well as a recruitment-targeted commercial structure that is fee-for-service.
“In terms of the recruiting side, it’s all live and ready to roll. The commercial structure for the existing advisers is going live on 1 July,” he said.
“We have recently received agreement from two new practices to join Matrix,” he added.
Matrix has done little recruitment in recent years – but the fact that the licensee is no longer for sale means recruitment has restarted, Mr Di Cristoforo said.
The commercial structure for existing advisers has been well received, he added.
“We spent a lot of time taking feedback from our advisers, so this is not a random decision to just make a change to the commercials,” he said.
Eighty-nine per cent of the business is owned by Matrix advisers, with the executive team accounting for the remaining 11 per cent of the equity, according to Mr Di Cristoforo.
But despite the advantages of operating an independent business model, there are few groups left standing in the space.
Asked about the collapse of AFS last month, Mr Di Crisoforo was unfazed: “We have never ever had any debt, and we are cash flow positive. When you look at a business model and the pressures that cause them to fall over, more often than not it’s related to debt,” he said.
“That’s a key factor for Matrix and, perhaps, the one or two licensees that are still profitable in the non-institutional space.”
Matrix currently has 41 practices and 104 advisers operating under its licence.
