Adviser numbers down again at Insignia

Insignia Financial has reported that there were 1,600 advisers in its network as of 30 June, a reduction of 82 advisers compared to the previous quarter.

In a quarterly business update released on Monday, Insignia stated that the fall was partly driven by the integration of MLC Advice into Bridges, which it said resulted in the departure of 30 advisers but no impact on client numbers or revenue.

The firm also confirmed the departure of 43 advisers from the self-employed channel, typically from smaller practices, as well as nine advisers from the self-licensed channel.

“There continued to be some shifts in the self-employed channel as Insignia Financial progresses the sustainability of the Advice business, with a number of practices opting to sell their client books or transition to a self-licensed model,” Insignia said.

“As part of its proposition to self-employed advisers, Insignia Financial was able to broker a number of internal M&A transactions retaining a significant proportion of the sold client books with pre-existing practices in the Insignia Financial licensees.”

Insignia noted that it had seen a “stabilisation in the level of departures” since the start of the current financial year and suggested that departures would continue to moderate moving ahead.

The wealth giant also reported a reduction in adviser numbers in its March 2022 quarterly results.

Total funds under administration of $205.2 billion were reported for the June quarter, down 6.9 per cent on the previous quarter, with positive net flows of $592 million offset by market decline of $14.9 billion and pension payments of $793 million.

Additionally, funds under management was down 4.7 per cent to $92.3 billion after market decline of $3.8 billion and institutional outflows of $901 million, which offset positive retail net inflows of $118 million.

“Insignia Financial has again delivered an improvement in platform flows, while facing into increased investment market volatility. Underpinning this growth momentum are client wins in Workplace Super and positive engagement within the Advisory channel,” commented Insignia Financial CEO Renato Mota.

“Flows into MLC’s retail asset management offering were once again positive, offset by outflows from the institutional channel which are typically lumpier in nature. The integration of MLC Advice into Bridges provides a strong foundation for profitable growth in Advice and provides Insignia Financial with two flagship market positions in Shadforth and Bridges.”

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.