Insignia Financial executed a sale agreement with Practice Development Group to return ownership of Godfrey Pembroke to advisers in February 2024, the company says.
In reporting its half yearly results to December 31, 2023, Insignia says this sale agreement was under an existing arrangement from when Insignia acquired the Godfrey Pembroke Group business.
Insignia told Riskinfo the Practice Development Group is “…a group of Godfrey Pembroke Group advisers who work alongside the Godfrey Pembroke leadership team as advocates and members of adviser representative committees.”
The company says that following the divestment of GPG to the GPG advisers, via the Practice Development Group, the role of the Practice Group will move from an advisory representative group to providing governance and management oversight of the GPG entity.
“The Practice Development Group will acquire the GPG ASFL, on behalf of the GPG advisers, and will continue to run the business along with the GPG leadership team, providing advice services and AFSL authorisation to GPG advisers,” Insignia Financial says.
New Advice Model
The half yearly results announcement also reaffirmed that the establishment of Insignia Financial’s new advice model for its Advice Services channel, Rhombus Advisory, continues to be well supported by advisers and is on track for profitability and separation in the 1Q25 (see: New Advice Services Partnership Model Progressing).
The company says that this, together with the divestments of Millennium3 and Godfrey Pembroke will “…reduce complexity and risk and provide greater focus on the Professional Services advice business, Shadforth and Bridges.”
Insignia also notes that “…expanding the scope of advice through superannuation and the development of new technology-enabled advice delivery provide significant opportunity for Insignia Financial.”
The results announcement says that adviser numbers declined during the period to 1,199, a reduction of 326 advisers (minus 21.4%) on pcp, saying it was primarily due to the sale of Millennium3, closure of Lonsdale licence and right sizing of Bridges “…as the business moves towards a sustainable, profitable base.”
