Review to create level playing field

Boutique dealer, Madison Financial Group has reaffirmed its intention to pursue a vertically-integrated model, as Assistant Treasurer Arthur Sinodinos announced a review into whether vertical integration created an unfair advantage.

Speaking at the Association of Independently-Owned Financial Planners national conference in Hobart on Thursday, Sinodinos said the government intended to look at whether the vertically-integrated model, championed by the big four banks and AMP, created an uneven playing field.

His comments followed Madison Financial Group’s appointment of former head of business development at Infocus Wealth Management Giulio Russo to the role of general manager.

Russo, who will report to Madison managing director Tony Hartley, said the dealer group, which is owned by PHAROS Financial Group, was committed to remaining independently-owned and would continue adding value for shareholders by pursuing a vertically-integrated model.

Russo said the Global Financial Crisis and the Future of Financial Advice reforms had negatively impacted on valuations and forced dealer groups to consider new ways of driving growth and value in the new environment.

“The previous drivers of valuations, namely trail commissions and volume rebates, have been diminished and we will be going down the vertically-integrated route to capture value in other areas,” he said.

Madison Financial Group offers five in-house multi-manager funds, developed in conjunction with Proactive Portfolios.

“These solutions help us build value and give our advisers investment vehicles for their clients,” Russo said.