Insignia retains business via internal advice M&A

Insignia Financial has pointed to some internal merger and acquisitions financial advice transactions in a move it says is helping retain a significant proportion of client books within pre-existing practices.

Insignia’s confirmation of the arrangement has come in its fourth quarter business update to the Australian Securities Exchange (ASX) in which it said there were 1600 advisers in the Insignia Financial network as at 30 June – a reduction of 82 advisers.

It said the reduction was driven in part by the integration of MLC Advice into Bridges which resulted in the departure of 30 advisers with no impact on client numbers or revenue.

The firm also noted the departure of 43 advisers from the self-employed channel which it said were typically from smaller practices – something which reflected a rest of licensee fees charged by Insignia to self-employed advisers from 1 October, last year.

It said nine advisers departed from the self-licensed channel.

Insignia also announced an updated figure for remediation with payments of approximately $356 million expected to be paid to clients between 30 June, last year, and 30 September, this year.