The evolution of Infocus Wealth Management from its origins as a single advice firm to a wealth platform supporting both its own authorised representatives and a range of self-licensed firms has taken its next step with the appointment of former chief executive officer of Acclaim Wealth, Terry Constable, as executive general manager of platforms.
Infocus founder and managing director Darren Steinhardt tells Professional Planner the business is increasingly focused on working with advisers and advice firms outside its own licence.
Steinhardt says a minority-interest investment in the firm in May this year by Scarcity Partners will accelerate its ability to shift from being an operating partner to advisers to being an operating and capital partner “for those who want to access either a combination of equity or debt capital to grow and evolve their businesses further”.
“They are a strategic partner, they have an investment into Infocus, and they’re with us as we continue to grow and evolve the business,” Steinhardt says.
“If I look at growth moving forward, capital is going to be very important. We’re a good, growing, strong, profitable business, and there are things that we obviously do off our own balance sheet, and we’ve invested heavily over the years. The advice profession in Australia is very, very exciting, and so we wanted to make sure that we had the ability of going into areas that we choose to go.”
Not a dealer group, not a platform business
Steinhard says Infocus is no longer just a dealer group nor is it just a platform business.
“We’re not any of those things. My personal view is the days of the dealer group, that’s dead, well and truly dead [and] if I look at what we do and how we work, we refer to ourselves as a strategic wealth platform. We’re in the business of advice, and we exist to help financial advisers run better financial advice businesses.”
He says this is what attracted the Scarcity investment to support its moves to “engage with member firms as an operating partner, where we exist to basically help develop and assist advice businesses, member firms, as their operating partner”.
Constable’s appointment reflects the growing need within the business for high-quality executives who are experienced in dealing with advice firms of all shapes and sizes and at all stages of development.
Acclaim announced on Monday that Constable will be replaced by Julie Hamilton. Hamilton was previously director of money market at DDH Graham, where she was responsible for strategic relationships, business development, product strategy, governance, compliance and operations.
In a statement Acclaim Wealth chairman Ugo Di Girolamo said Hamilton brings “a rare combination of strategic leadership, deep operational expertise and a genuine understanding of what advisers need from their platform partner”.
“Through her work at Money Market, she already has strong relationships across our clients and adviser communities, and a deep appreciation of the qualities that make Acclaim different.
“We wanted a leader who could continue strengthening our adviser proposition while ensuring we maintain the high service standards our advisers and clients expect. Julie’s experience across wealth management, distribution, compliance and operations makes her exceptionally well placed to lead Acclaim into its next chapter.”
Constable’s appointment follows those of Ed Young as chief technology officer, Hayley Briggs as chief financial and operating officer, and Matt Fogarty as executive general manager of strategic partnerships.
“Traditionally we have used our wealth platform, our technology platform, within the four walls of the Infocus community,” Steinhardt says.
“The business is evolving and expanding and going outside to self-licensed firms and that broader community we engage with. We just wanted to increase the calibre or the quality of the executive running that sort of function.”
“We have a very, very strong CTO in Ed Young, who’s responsible for the technology. Just needed a strong, proven, capable executive to lead that part of the business. So, we did quite an extensive search, and we’re very, very pleased that Terry’s joining us.”
Positive changes for advisers
Steinhardt said changes announced recently by the Minister for Financial Services Daniel Mulino – specifically changes to the safe harbour provisions of the Corporates Act and the revival of the idea of a new class of adviser – are generally positive for advisers and their businesses.
“The changes in relation to safe harbour and the associated impact that’s going to have in relation to the code of conduct, I think that’s actually sensible. It just removes uncertainty. I think that’s quite a good positive,” he says.
“I look at the new class of adviser, I’m still torn on that. I’m broadly supportive of things that actually allow those who need advice to get advice, really quite broadly supportive of that.”
In particular, he says, the ability for super funds to employ a new class of adviser and collectively charge members whether or not they receive advice is a cause for concern. He says the advice community has spent “a good decade really uplifting and professionalising what they do” and should be proud of the progress made.
“I don’t think it’s fair that [members] in good quality industry super funds will be charged a fee to pay for somebody else’s advice. Quite frankly, that’s not on. That’s not what a profession is.”
“With my rose-coloured glasses on, I would like to see this as a good pathway to grow the size of the profession, the advisers coming in, another entry path, but I really hope that there doesn’t end up being a retrograde step. That’s my big concern.”
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