Fifty-three advisers with more than $2 billion in funds under advice exited IOOF’s self-employed advice network during the last quarter, the wealth giant announced as part of its Q3 earnings update on Thursday.
The exodus and FUA reduction is inline with the group’s expectations under it’s ‘Advice 2.0’ program. As part of the plan IOOF expects to see a total of 140 advisers depart the network, as announced to the market in February.
“Fifty-three advisers with $2.1 billion in funds under advice transitioned from IOOF licensees due to various reasons including practices that we believe will not be economically sustainable under our future advice model,” CEO Renato Mota said.
At Thursday’s business update Mota described the streamlining of its advice business as a strategic response to an era-defining transformation of the financial advice industry designed to deliver a step-change in the quality and affordability of advice while removing conflicts associated with subsidisations from other parts of the business.
Fourteen advisers with $1 billion under advice also transferred from the network to be users of the group’s Alliances services – this is in addition to the 53 advisers leaving the self employed network, the public disclosures show.
Overall funds under advice and administration was up for the group during the reporting period thanks mainly to favourable market conditions resulting in a $5.4 billion uplift. The group’s Portfolio and Estate Administration business which includes its proprietary managed accounts solution recorded net inflows of $267 million during the period.
Mota also noted the group was on track for completion of its transformational MLC acquisition by June 30 which is still subject to APRA approval.