Financial advisory firm Plan B Group has made changes to its adviser remuneration system following a review of the company’s Perth operations.
In an address to the Plan B annual general meeting lodged with the Australian Securities Exchange, Plan B chairman Bryan Taylor said the change would, among other things, help reduce the group’s operating costs in 2012.
The review focused on both operations and systems and resulted, as InvestorDaily has previously reported, in five financial advisers being made redundant and a drop in support staff numbers, Taylor said.
“Importantly, the adviser remuneration system has been changed to reflect a higher focus on profit and growth,” he said.
“These changes will reduce the operating costs of the division in the 2012 financial year and we believe the changes position the division for renewed growth.
“Furthermore, we are confident that we will continue to deliver high-quality financial advisory services to our clients during this period of change.”
In terms of further expansion, he said the group intended to “pursue and evaluate growth” through acquisition.
“We believe that the challenges facing the financial planning industry provide further opportunities and that Plan B’s fee-based fiduciary approach will resonate with independent advisers and groups of advisers,” he said.
As well as commenting on the review, he gave an update on Plan B’s performance.
“The disappointing performance of global equity markets during the first quarter of the 2012 financial year was reflected in a 5.7 per cent decrease in funds under management and administration (FUMA) as at 30 September 2011,” he said.
He said while equity markets and the group’s FUMA had improved since the end of September 2011, investment market volatility continued to have an impact on Plan B’s revenue.
“Due to the close link between average FUMA levels and group revenue, revenue has decreased during the first quarter of the 2012 financial year when compared with average revenue earned during the second half of the previous financial year,” he said.
“Revenue earned from the Integral Master Trust in New Zealand has partially offset the impact of decreased FUMA levels in other parts of the business during this period.”
