Custom Wealth Solutions has tipped a move into the mortgage broking space, planning the acquisition of an independent aggregator and predicting overall growth to around 300 total representatives in the near future.
Group founder and chief executive Chris Appleyard said Custom Wealth currently has 47 outstanding applications - submitted since the start of the year - from financial advisers wishing to join the group.
"The amount of interest at the moment is profound - we've crippled our infrastructure due to inflows," he said. "Our growth is exponential.
"[We have] looked to move into mortgage aggregation via an acquisition and merger with an independent aggregator - which inherently means the group has attracted another 150 brokers, exceeding 250 representatives across financial planning, accountancy and mortgage broking."
Combined with the applications pending, this could push the group past 300 representatives in total, Mr Appleyard said.
This is despite Custom Wealth's setting high standards for new applicants, who must achieve an advanced diploma of financial planning - subsidised by the group - within 12 months of joining.
"The unique situation for our business is that we have quite a long and arduous vetting process," Mr Appleyard said. "We've made it very clear that we don't accept every adviser, we have minimum education requirements, and rigid regimes around our opinion on compliance, incidents around personal credit, and fit and proper status."
The group also does not run an approved product list (APL) which Mr Appleyard says improves advisers' behaviour because they are forced to do qualitative research around asset and portfolio construction, he said.
It has the desired effect because rather than the APL becoming an instrument for writing products, the adviser ensures the products they recommend are the ones that are best for the client.
"An adviser on a bank [Australian Financial Services Licence] will get told, 'No, it's not on the APL, we don't get a click from it, or the PI [professional indemnity insurance] doesn't cover it'. We have a greater level of flexibility," he said.
"Informally, we have received feedback that our systems and structures are sound [and] the way we govern and supervise our representatives is quite stringent."
This also benefits the group's PI coverage, he said, with Custom Wealth receiving a competitive premium because of its risk management structures
Representatives are also individually insured, rather than being insured under the dealer group, which means they don't have to pay an additional premium for services that they don't offer.
