Spark Financial moving to ‘profit-for-purpose’ model

The dealer group said it will launch the Spark Legacy Program on 1 July to kick off its new model, in which 100 per cent of its profits will be donated to nominated charity partners. While the charities have not yet been disclosed, Spark said the objective of the new operating model is to “improve financial literacy among young Australians”.

Spark Financial Group’s director and chief investment officer, Andrew Coloretti, said the new model will see the dealer group deliver on its core organisational ethos and values.

“The Spark Legacy Program is testament to the support of our executive, our advisers, and our partners who want to contribute to our society in a coordinated, structured manner,” Mr Coloretti said.

“Transitioning a business model from for-profit to profit-for-purpose is no easy feat and not a decision the executive has taken lightly, but we’re proud to be changing direction in such a way.

“It has been a trying few years for many people, punctuated by COVID lockdowns and the resulting economic uncertainty. The opportunity to improve the financial wellbeing of young Australians, in particular, is one that has been embraced by our network.

“We are determined to stand for something and make a real, tangible difference to the lives of people who have a low level of financial literacy or little access to financial literacy education.”

Spark said the program would give its advisers opportunities to positively impact their local communities through several initiatives, including those relating to financial hardship, financial abuse, and mental health issues.

Under the profit-for-purpose model, Spark said it would support financial literacy and wellbeing through easy-to-understand products and services, and appropriate tools and resources to facilitate understanding and decision making about financial products and services.

The program will also include a charity fund, Spark Hope, which will be overseen and governed by an independent trustee, and become a mechanism for Spark advisers to contribute towards the program’s initiatives.

“Our new model will ultimately result in young and vulnerable Australians being better informed about money and where and how to invest,” said Mr Coloretti.

“It’s an opportune time for the broader financial services industry to unite and consider both its individual and collective contributions to the common good.”

In April, Spark launched a digital investing solution, Spark Invest, for investors seeking self-directed investment options, who may not yet be ready for professional advisory services.

“Launching our digital investing solution today is a logical step in empowering consumers to engage with investing and building wealth in an accessible fashion and for Spark to reach an even greater number of people seeking cost effective solutions,” said Spark Financial Group chief executive and founder Arthur Kallos.