Filling a gap in the market for ethical and faith-based investing, Hejaz Financial Services has launched a dealer group for Islamic financial advisers.
The Hejaz Financial Advisers licensee will serve advisers that observe the Muslim faith but will not restrict itself to that demographic hoping to service other clients who want ultra-ethical products.
Although currently only having 10 advisers on its licensee, the group said it aims to focus on quality of over quantity that will emphasise collaboration and training.
The firm aims to service the 800,000 Muslims in Australia that have felt they have been excluded from traditional financial products.
Hejaz Financial Services chief operating officer Muzzammil Dhedhy said financial advice needs to become more tailored to customer needs, particularly religious faith.
“Demand for sustainable, faith-based, and ethical financial products and services is growing. Australians want their investments to reflect their values, whether these are in line with religious principles or their moral compass but are rightly wary of greenwashed products and promises.
Familiar territory
Hejaz Financial Services CEO Hakan Ozyon told Professional Planner last year the aim was to reach 200 advisers.
The group runs Xplan Model Office with a suite of advice templates and includes an inhouse research team that assists with recommending model portfolios.
The fees charged are a flat $12,000 for the first authorised representative, $9,700 for subsequent ARs and $4,500 for provisional advisers, plus 3 per cent of annual revenue.
Fees are capped at $48,000 per annum, including practice and the licensee split fees (based on annual revenue.
Hejaz Financial Services head of marketing and distribution Ali Ozyon said the licensee was launched because they believed there is an affinity between advisers that want to better service Muslim clientele.
“We strive to partner with advisers who are dedicated to walking in the shoes of their clients to foster strong, ongoing relationships through quality advice and empowerment. Hejaz Financial Advisers is a broad church and you don’t need to be Muslim, or adhere to any other religion, to be part of this.”
