Diversified financial services firm Pharos Financial Group (Pharos) intends to expand its scale in the non-institutional dealership space by enhancing its a dealer-to-dealer service model.
Pharos, which provides services to its wholly owned dealer group, Madison Financial Group, plans to further develop another of its wholly owned subsidiaries, the AdviceNet business, to provide dealer services.
"With several D2D [dealer to dealer] contracts already in place for compliance services, it was logical that investment committee services be our next focus due to their criticality to AFSLs [Australian financial services licences] and ARs [authorised representatives]" Pharos managing director Mark Perry said.
"For many of the smaller independently owned AFSLs, resourcing investment committees is often one of those areas that would be a 'nice-to-have' luxury but not one that many can afford - especially when it comes to attracting committee members outside their group."
Perry said as part of the AdviceNet development, Pharos is attempting to develop a D2D hub that "leverages not only our scale but that of the combined users".
"We know we're up against several [institutionally] owned models but like us, the smaller independently owned AFSLs often don't want to access their services, seeking instead more conflict-free options," he said.
As part of the strategy, Pharos has appointed Platinum Asset Management chair Michael Cole as chairman of its dealer service and proactive portfolios separately managed account investment committee.
Cole's appointment is part of Pharos' strategy to boost the committee's capabilities, the company said.
Cole replaces Pharos chair and Madison Financial Group head Tony Hartley who has been forced to step down from his current investment committee positions due to health issues.
"In agreeing to chair this committee, I am not only trying to fill the void of replacing Tony Hartley but I believe that the direction Pharos is taking, is both of benefit to advisers and clients alike and a direction that I believe my background and thinking style can add to," Cole said.
Commenting on Cole's appointment, Perry said: "Michael brings to the committee skills and capabilities that we believe are complementary and in addition to that of the other serving committee members and a wealth of experience that in this period of investment volatility, will act as a steadying hand to make the calls our clients expect of us."
Cole currently chairs Platinum and serves on a number of boards including New South Wales Treasury Corporation, Illawarra Mutual Building Society. He is also a director and major shareholder of OneVue.
