While recent signs point to industry consolidation, one wealth management business believes the privately-owned sector is relevant and provides significant opportunities.
ClearView managing director Simon Swanson said that the Future of Financial Advice (FOFA) reforms “play to us very well” due to the insurance and wealth management group’s position as a vertically integrated operation which holds responsible entity (RE) and registered superannuation entity (RSE) licences.
“We have all the licences except for the banking licence, and we certainly don’t want one of those. Having all these gives us huge strategic flexibility,” he said.
“That’s what’s driving some of the consolidation. You need to be playing in every part of the value chain and we can.”
Swanson does not see the big institutions as a threat. Rather, he views the current environment as an opportunity.
He said ClearView has taken on new initiatives to keep the independent business relevant.
“We’ve got a 10-year distribution alliance with Bupa Australia, and they own the MBF/HBA and mutual community, so they’re the second largest health insurer in Australia,” he said, adding ClearView has distribution tie-ups with seven credit unions as well.
“The idea is that we’re able to distribute life insurance and obtain wealth management referrals through our strategic partners.”
Swanson said the second initiative addressed the concerns of independent financial advisers who are “disenfranchised” with their existing suppliers and “looking for something new in the market”.
“Effectively, if you exclude Macquarie Life, who’s institutionally owned, this would be the first life-advice product new to the market for 20 years at least,” he said.
Swanson also stated that ClearView had no further acquisition plans.
“Ours is purely an organic growth strategy. If something comes up that’s of interest to us,we’d look at it but really it’s not our sole focus at all.”
During the 2012 financial year, ClearView will build and release adviser-based insurance offerings consisting of a basic life insurance product and a super wrapper.
“We’re also launching a private-label platform, and that will have ClearView funds on it as well as access to the [S&P/ASX 300 index],” Swanson said.
“It’s got model portfolios and it’s got our own funds underneath it, and of course because ClearView is continuing to be the RSE and the RE on this fund, money goes through the whole part of the value chain.
“We’re also upgrading our existing platform and we’ll be making an announcement about that in the next four weeks.
“We’re doing lots of things on lots of fronts, and what we’d like to see is a significant niche in the market for a new product for IFAs to take to their customers.”
