Aggregator continues expansion drive with stake in financial planner

by Adam Smith04 Jul 2014
An aggregator has continued its expansion path by snapping up a major stake in a leading finacial planner.

Finsure has announced it has taken a major stake in Spectrum Wealth Advisers. The company's managing director, John Kolenda, said the deal followed on the heels of Finsure's acquisition last year of LoanKit.

“Our combination with LoanKit has moved us into the top 10 brokerages in Australia and we will be building on that to break into the top five within the next five years,” he said.

Kolenda said Spectrum Wealth had more than 200 authorised representatives providing a range of financial services.

"The addition of Spectrum Wealth Advisers makes Finsure one of very few aggregators with a stake in a privately owned dealer group. This allows us the opportunity to provide our brokers with the benefit of more than one income stream by being able to offer customers broader financial solutions, including life insurance and investment advice," Kolenda said.

He said the deal meant finsure would be able to provide life insurance and other insurance products, along with various financial advice solutions. Kolenda said the move would also open new training opportunities for the company's existing brokers.

"Our brokers can be trained and mentored to qualify to provide financial advice solutions themselves; or they can choose to refer their clients to a trusted financial planner within our Group. This improvement in capability and overall expertise will enable us to offer better solutions for our customers. Being able to have more than one financial service provided by their accessible broker is simpler and more convenient, and when you take into account the financial advice is not conflicted, it all adds up to a win-win for clients," he said.

Kolenda tipped that Finsure would look to continue acquiring aggregators and financial planning operations.

“We will always keep an eye out for growth opportunities in addition to the success we have had growing the company organically,” he said.


  • by Coast Broker 4/07/2014 10:26:53 AM

    Sounds like another Firstfolio.

  • by Alex 4/07/2014 11:48:15 AM

    I am concerned that so many corporate executives believe that a mortgage broker can also be a financial planner. I don’t doubt that a few do have the qualities to do so successfully BUT so many don’t and to be as short-sighted as to state that brokers can be trained to qualify to provide financial advice solutions as if it is so easy and as a matter of fact confirms that those making these corporate decisions to integrate financial planning and mortgage brokering business in this way are inept!
    ASIC if you thought CBA, Storm financial et al was a problem then this new endeavour is a catastrophe being watered as I type (note the seed has already been planted). The outcome will not be limited to one firm or a group of people rather it will be widespread across all types of clients and business across Australia.
    If a professional wants to be a licenced Mortgage Broker as well as a Financial Planner so be it but their compliance MUST be of the highest order. They should not be allowed to claim CPD points for activities completed as a financial planner on their mortgage broker records. ASIC and their aggregator and dealer group must insure more stringent compliance requirements and documentation. Dealer groups and aggregators should employ people that understand BOTH businesses if their members are to act as both mortgage brokers and financial planners.

  • by Finance Guy 4/07/2014 2:02:59 PM

    Sounds like an interesting concept, I'd like to see how comm splits work. I also wonder what calibre of brokers and planners this model attracts.

    The nature of my work has introduced me to hundreds of financial planners and mortgage brokers over the past 15 years. Maybe I'm attracting the wrong sort, but, in my opinion, most of them would not be interested in such a structure because.... there is no added value to them.

    Most successful members from either discipline, already have referral agreements in place, and are already receiving income from making these referrals, while some have 'exclusive arrangements' others have multiple referral partners.

    I have met some who are qualified and practicing as bother planners and brokers, but most prefer to focus on what they do best, rather try and be a one stop shop.

    In my opinion, members from both sides, would prefer an aggregator/AFSL who gives them more freedom, and better splits.

    Planners and brokers are all in business for the same reason, to make money, and a structure like this may put limitations on their ability to do so, and cause an impasse in signing on successful members of either community.

    I could be wrong, but I am assuming that this structure involves Finsure and Specturm having 'exclusive' agreements with each other, and this is a serious limitation. Imagine being unable to form what could be a very lucrative referral agreement, because the planner is from the wrong AFSL, or the Broker is from the wrong ACL.... It's like being forbidden from seeing the girl of your dreams, because she supports a different AFL team

    I understand that if we want to get to the Emerald City, then we have to follow the yellow brick road down the path to new ventures. I'd definitely like to see how this pans out.

    Finance Guy