Count Financial (Count) may undergo a shift in strategic direction with the firm examining the potential of becoming a product manufacturer in light of regulatory reform, the firm’s new chief executive has said.
Count chief executive Andrew Gale said while the government’s Future of Financial Advice decision to ban commissions was not a big issue for Count members – the vast majority of members are already on a fee-for-service – there is concern around volume-based fees arrangements and platforms.
“A key issue obviously is the range of outcomes regarding platform offerings, especially with the announcements around volume-based bonuses arrangements around platform services,” Gale said.
“In terms of that development, we believe that we have a range of options available to us in terms of how we respond to that. One of those options is that we take a role of becoming a product manufacturer, a responsible entity and all the services which go along with that.”
He said Count is also examining whether to also include a multi-manager fund-of-fund capability in its offering.
“One of the other initiatives we’re looking at is that whether within our suite of offerings we should also have a multi-manager fund-of-fund capability, which would be part of our core investment offering suite,” he said.
Gale said if the firm decided to undertake such change, Count’s share of the value chain would remain resilient.
Meanwhile, Count chairman Barry Lambert has announced the firm’s subsidiary, Countplus, will develop an accounting franchise network as well as continue its acquisition activity.
“We will be developing a Countplus accounting franchise and that will sit alongside a Count franchise,” Lambert said.
“These two franchises, the Countplus franchise and Count Wealth Account franchise, will be the main source of new acquisition.”
Countplus remains on track for its initial public listing this December, he said.
