The resetting of Insignia Financial’s financial advice operating model is progressing, with Rhombus Advisory on-track to launch in July 2024.
In its ASX quarterly update for the three months ended 31 March 2024, Insignia says advisers “…continue to demonstrate positive sentiment towards the partnership strategy and remain engaged with the process,” (see: Insignia Advice Restructure).
It notes an information memorandum has been provided and presented to eligible advisers, along with a term sheet, as the equity participation approach nears implementation.
The company says the advice partnership model will “…create aligned interests with advisers, allow Rhombus to be more focused and attractive as a partner to advisers to drive growth while allowing improved focus on the growth of Insignia Financial’s Professional Services Advice business.”
Adviser Numbers
Meanwhile, the update also notes there were 1,100 financial advisers in the Insignia Financial network as at 31 March 2024, comprising 208 advisers in the Professional Services (employed) channel and 892 advisers across Advice Services channels (self-employed and self-licensed).
The company says the ownership of the Godfrey Pembroke licence was returned to its advisers during March 2024 “…as part of the advice simplification program, resulting in the departure of 54 advisers from the Self-Employed channel.” (See: Sale of Godfrey Pembroke).
Excluding Godfrey Pembroke, six smaller practices departed and Insignia says these adviser exits were “…more than offset by adviser growth in existing practices. Adviser numbers within the Employed channel were broadly stable.”
It notes the reduction of 45 advisers from the Self-Licensed channel was mainly attributable to the departure of four practices from the MLC Connect business, resulting in a reduction of 36 advisers.
