Wealth management firm Yellow Brick Road is to move to a franchise model as it focuses on increasing its financial planner numbers.
In an announcement to the ASX, YBR said its wealth division has been restructured following the recent resignation of its wealth management chief executive Matt Lawler.
The division will now be led by a general manager, whose role comprises both the chief executive and national manager roles. This appointment will be announced in due course, the statement said.
Moving to a franchise model is an important progression in YBR’s operations, executive chairman Mark Bouris said.
“The old licence structure served us well but is not adequately responsive or commercial to meet the future challenges and opportunities for a retail-oriented business like ours,” he said.
“We’ve had a period of phenomenal growth, with multiple acquisitions and the development of new proprietary technologies. It is prudent we bed down this activity and successfully consolidate the acquisitions."
Mr Bouris also noted that YBR has "done a great job" in attracting mortgage brokers.
"We now have a compelling offer for financial advisers, and with the wealth strategy set and our service offering near complete, our focus is on increasing adviser numbers and driving uptake of our wealth services with customers,” he said.
YBR said it will consolidate both staff numbers and its acquired businesses, which include Resi Mortgage Corporation, Vow Financial, Brightday and Loan Avenue.
The company will also remove a number of management level roles across lending, wealth and marketing that are “no longer required due to the fulfillment of projects and integration of acquired businesses”.
“In line with the reduction of a number of high-cost senior management roles and other various management layers in the whole group, I have asked the remaining senior managers to adopt what I call a ‘step in’ mindset so they will be stepping into the roles that have been eliminated and this will be done starting with me as executive chairman,” Mr Bouris said.
“Consolidation is about creating new efficiencies and reducing costs and all of us working harder to achieve the targets,” he said.
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