Godfrey Pembroke advisers vote with their feet

ANALYSIS

The Godfrey Pembroke brand currently still resides with Insignia Financial but the advisers are headed to a new structure with Clime’s Madison Financial under the Practice Development Group (PDG).

And if anyone is wondering about who, precisely, is the PDG that was explained by Insignia in November, 2020, when the company (then still branded as IOOF) explained that the PDG is “an incorporated body comprising a board of Godfrey Pembroke peer-elected advisers to represent the interests of advisers within the Godfrey Pembroke network.

Indeed, the PDG came to prominence when Insignia acquired the MLC Wealth business when it was tasked by Godfrey Pembroke to conduct due diligence on whether Insignia/IOOF’s acquisition of Godfrey Pembroke “would be a suitable fit for the group, as well as reviewing alternate licensee solutions”.

Financial Newswire understands that there was no reference to the “Godfrey Pembroke” brand in yesterday’s announcement of the strategic relationship with Clime’s Madison Financial in deference to Insignia’s wishes.

However, the unique status of Godfrey Pembroke advisers was made clear back in 2020 when the PDG described Godfrey Pembroke as “adviser led institutional boutique” and the insistence that the PDG would “have veto rights on practices and advisers that can join the license and ensure cultural alignment and high standards are maintained”.

The key to the strategic agreement between the PDG and Madison is actually contained in the quotes attributed to Clime chief executive, Annick Donat that it would see advisers having the opportunity to “build a peer-led community”.

The other key to the arrangement is the fact that it actually takes a page from the recent Insignia Financial playbook by creating a new service company to house the new adviser business which, from the outset, will house 130 financial advisers with approximately $80 billion in funds under advice.

According to Clime Investment Management’s announcement to the Australian Securities Exchange (ASX), once formed, the alliance will consolidate the respective service offerings of each group into a single entity that will provide licensee services to their respective adviser networks.

“The combined group will therefore be positioned to attract advisers from the broader market hat are seeking an improved licensing service,” the announcement said.