Renato Mota

Despite the loss of 82 advisers over the last financial year, Insignia expects numbers to stabilise over the coming 12 months and eyes further growth while it continues to simplify its business structure.

Insignia chief executive Renato Mota noted the structural shift in the industry over the last couple of years, expecting FY23 to stabilise then grow after that.

However, he tells Professional Planner the lingering question for the industry is how to best grow adviser numbers.

“The challenge for the industry and policy settings around that is how do we promote financial advice as a terrific career option for Australians. There will be a gap left by the departing advisers that as an industry we will need to fill through new talent.”

In its quarterly business update to the ASX published on Monday night, Insignia stated there were 1,600 advisers in its network as of the end of the financial year.

The lost advisers was partly attributed to the integration of MLC Advice into Bridges which led to the departure of around 30 advisers and Insignia stated this had no impact on client numbers or revenue.

Another 43 advisers that departed were from the self-employed channel and typically from smaller practices which Insignia said reflects the reset if licensee fees charged by Insignia to self-employed advisers from 1 October 2021.

Despite that, Mota has a positive outlook for the business noting platform growth and simplification.

Having bought the MLC business 12 months ago, Mota says the team’s effort in re-engaging relationships has been rewarded.

“It’s the culmination of 12 months of work – a lot of work – but it’s great to see the rewards of that work translate to outcomes.”

Raise the roof

Insignia completed its transition of more than 21,000 members from Integra Super to ANZ Smart Choice Super in June, reducing the number of platforms from seven to six.

Mota says the aim is to get down to one or two platforms.

“We haven’t been prescriptive around the timeframe. We’ve announced the simplification of the Integra system and we expect one other of the acquired platforms to be simplified in 2023. There will be more to follow but we haven’t put a timeframe around those.”