The head of Sentinel Wealth, Justin Hooper, wants to prove a point. Scaling up the business and replicating its philosophy is important to him in silencing the doubters.
Co-founded by Hooper in 2004, Sentinel will celebrate its first decade in December, a particularly important milestone for an independent financial planning business that has lived through the GFC.
“But we need to get it absolutely right and we need to improve the model. We’ve got to prove that it works,” says Hooper, who believes part of this proof lies in growth.
The business now has around 260 clients and employs 10 financial planners across two offices. One overlooks the Sydney Harbour Bridge from Milsons Point, the other is a satellite office in the central business district.
Hooper is keen to expand Sentinel by taking on more staff and opening up one or more interstate locations over the next two to three years.
“Our next stage is to work out how we can be more efficient in the process [of servicing clients]. We reinvent the wheel all the time,” he says.
Sentinel uses quite an unconventional approach that includes detailed profiling of clients, which Hooper describes as “almost liberating for clients [as] they become aware of their financial beliefs”.
Its process includes what Hooper terms an initial “best fit” meeting with the client, followed by a “visioning meeting” that he says often extends to around three hours.
An engagement meeting takes place in the later stages, “where we discuss what the objectives are, what needs to be done”. Scenario planning also occurs before the implementation phase begins.
“Implementation is relatively quick, we spend much more time up front,” says Hooper.
Fee structure
Sentinel offers clients three distinct fee systems, with no commissions, even on insurance products. Clients can be billed per hour, charged a fixed project fee and those requiring ongoing servicing can enter a retainer arrangement.
While Hooper says they don’t charge for initial meetings, “I think we should start to charge for scoping”.
The independent value proposition
“Certain planners who want to do meaningful work will find us. In every audience I speak to, there’s always about 10 per cent who contact me after and they’re desperate to do that kind of work,” says Hooper.
He believes this is magnified in the current environment, where most commentators and industry stakeholders agree financial planners’ reputation has never been lower.
“These days there’ll be many more than that. So I don’t think it’s going to be difficult to find the number of advisers that we need to expand.
“Where you don’t have commissions or conflicts, there’s a feeling of liberation that is priceless.
“And it’s portrayed in the way you work with clients…you do better work, feel better about the work you do and you’ll be more successful,” Hooper adds.
Upsizing options
Along with organic growth, Hooper also suggests he will consider various other options including acquisitions, partnerships and even a franchise model.
“All options are open. From us being merged into a much bigger entity and then embedding our process, or…merging with a similar-sized business,” Hooper says.
Rise of the independents?
Whatever route Sentinel takes, Hooper believes independent financial planning faces a bright future in the post-Future of Financial Advice landscape.
“The move toward independent, conflict-free advice [is] not going to stop. The big aligned groups are going to struggle.
“I think it’s enormously challenging to be part of a big corporate network…[even] for the people running it, it must be a hell of a job.”
