My Adviser will add four financial planning practices within the next few weeks, the non-aligned dealer group’s chief said.
“These four businesses decided to join us because we are non-institutionally owned and we have no ties to any banks or institutions,” managing director Philippa Sheehan told InvestorDaily.
Sheehan declined to name the new practices or divulge their gross revenue, stating they had committed last week to join My Adviser and were completing licensing documents and fulfilling the 30-day waiting period.
However, Sheehan said one new business was based in Sydney, one in Port Macquarie and two were on the Gold Coast.
Perhaps more importantly, three of the new businesses were from institutionally based businesses and one was independent.
“It’s positive to see, from that style of licensee, that advisers are making these decisions now,” she said.
“We never expected to expand the business this quickly but four good-quality businesses joining My Adviser at a time when legislation is still a little uncertain goes to show that advisers are thinking in advance how they need to position their businesses for the long term.
“I think that’s a good indication of both adviser and client sentiment.”
The Future of Financial Advice (FOFA) reforms have created anxiety in the advice industry.
Advisers are trying to work out the best course of action for themselves and their clients as draft laws for the reforms are unveiled piecemeal.
The first tranche of FOFA has been referred to the Parliamentary Joint Committee which has said it plans to deliver its recommendation in February.
“A lot of advisers could sit back and wait until FOFA comes in or wait until things are defined a little further but advisers are making the decisions now as to who they want to align themselves with,” Sheehan said.
In April this year, listed dealer group Plan B bought one-third of the Queensland-based My Adviser for $980,000. Plan B intends to purchase the remainder over the next two years.
My Adviser has about $1 billion under advice with practices in New South Wales, Queensland and Victoria.
The expansion will bring My Adviser’s total to 125.
Asked whether the dealer group was still looking to build on its practice numbers, Sheehan said: “Absolutely. We’re always on the lookout for business to join us.”
My Adviser would stop looking to add new businesses when the group had about 150 practices, she said.
