Australian Unity Personal Financial Services, the financial advisory arm of Australian Unity, has plans to grow its network to 100 practices by 2017, and with a strong focus on forging partnerships with accountants.
The group, which currently has 63 practices and 117 advisers concentrated in Melbourne and Sydney, had referral partnerships with 242 accounting firms as at June 30, 2014, up 48 per cent on 2012.
Australian Unity Personal Financial Services chief executive Steve Davis said the success of the division, during a difficult period which saw the introduction of Future of Financial Advice and Stronger Super reforms, defied trends in the financial advice industry.
“We grew our adviser numbers by 54 per cent last financial year to meet the strong demand for advice we received from our referral partner program,” he said.
The financial planning group delivered its maiden full-year profit in the 2013 financial year coinciding with a 91 per cent increase in funds under advice to $1.96 billion and an almost doubling of revenue to $18.03 million in the year to June 30, 2013. This followed significant losses in 2011 and 2012.
The result was boosted by the acquisition of a majority stake in Certainty Financial in January.
Davis said the increased regulatory burden introduced unnecessary layers of red tape with no real benefit to clients but also created opportunities, with increased barriers to entry into financial services potentially reducing the level of competition.
Furthermore, Australia’s ageing population, changes to the aged care rules and the lack of income provided by financial products meant the need for financial advice had never been greater, he said.
“Our business is well positioned with a strong service proposition for advisers and clients,” he said.
“We want to capitalise on opportunities related to retirement and aged care.”
Australian Unity, a national healthcare, financial services and retirement living organisation that provides services to over half a million people, launched its financial planning business in 2002.
Davis said the Personal Financial Services division was continuously looking at ways to work more closely with other parts of the business such as Australian Unity Retirement Living Services which is headed by Derek McMillian.
“We’re working with Derek’s business to create models and calculators to help people make decisions around aged care and the cost and expenses involved. A lot of people don’t factor in the cost of increased medical, healthcare and health insurance into their retirement income needs,” Davis said.
“There’s a lot of opportunity to work with residents (in retirement living organisations) to provide advice.”
