ING Australia has closed its financial advice division with the business’ dealer groups now responsible for their own day-to-day control.
The decision to cast off the advice division follows the departure of ING head of advice Colin Morgan late last year.
“What we’ve done is decided to implement a new model whereby each of the dealer groups are now reporting through their respective boards,” ING Australia executive director for aligned distribution groups Ross Bowden said.
“Instead of amalgamating all the dealer groups together and managing them in one division, we’ve decided to treat the businesses individually.”
Bowden is now responsible for overseeing the dealer groups and holds a seat on each of the group’s boards.
He also acts as chairman for a number of the group’s boards.
Under the new advice model, a number of the functions that were previously under ING’s advice division have been moved back into individual business, including finance and strategic work.
Despite ING relinquishing day-to-day control of the dealer groups, Bowden said there was still a direct link back to the institution.
“There has to be an oversight and governance. Every business has to have that,” he said.
“But we’re basically saying that we don’t want to merge the groups into manufacturing operations.
“We’ve basically disbanded our advice division and I’ve become the executive at the table.”
Bowden has already begun overseeing dealer group activities. Last week he sent an email to Tandem Financial Advice advisers and staff notifying them that Financial Services Partners (FSP) had assumed control of both groups.
“We’re part way through that process and a number of the Tandem staff are moving across to FSP,” he said.
“It makes logical sense for FSP to assume responsibilities to Tandem. And that is something that has been communicated to Tandem practices and staff.”
In December, ING bought FSP for $50 million.
ING’s adviser network comprises Millennium 3, RetireInvest, FSP, Tandem Financial Advice and ING Financial Planning.
