Demand grows for FoFA-ready, non-conflicted investment solutions

Demand for simple, conflict free portfolio construction services has seen specialist investment management group Select Asset Management (Select) build strong momentum for its ‘FoFA ready’ Customised Portfolio Solutions (CPS).

Select has secured partnership agreements with several leading financial advisory firms and expects many more non-institutionally aligned licensees to be interested in its CPS. Gippsland, Victoria-based DMG Financial Planning Pty Limited* (DMG) has become the most recent firm to sign on for Select’s CPS.
 
Select Fund Services will be responsible entity to the DMG Diversified Portfolio, while Select Investment Partners will act as DMG’s asset consultant. 
 
The DMG announcement follows the launch of the Stonehouse Core Value Portfolio in February 2013.  Select’s CPS have also been in use by Profile Financial Services and MGD Wealth for over 2 years and 1 year respectively. 
 
Select CEO Brendan Foley said: “Select has pioneered a unique portfolio service built on our decade-long track record of investment management and administration excellence. Not only that, we are offering financial planning licensees a way to build viable business propositions based on the most scrupulous ‘best interest’ principles.”
 
Mr Foley said such non-institutionally aligned groups are also seeking greater business certainty built on non-conflicted remuneration structures and a systematic approach to enhancing the full value proposition of unfettered financial advice.
 
“Demand has increased as we approach the July 1 start date for FoFA reforms, with many quality dealer groups seeking innovative ways not only to remove or minimise their compliance risk, but to properly unshackle their advice from the constraints of inherent conflict.”
 
Mr Foley said such licensees have had too few choices as they seek a non-conflicted approach and to avoid the pitfalls of institutional dealer group models where research, investment and platforms are tilted towards in-house investment products, further complicated by being built on vested research ratings.
 
“Standard model portfolios and recycling approved product lists no longer makes the grade,” he said.
 
Mr Foley said advisers are attracted to Select’s dual offering and track record: “We understand how to successfully manage non-conflicted multi-asset investment portfolios, and have done so on behalf of ourselves and third parties for over a decade. We also have deep experience in operating retail and wholesale funds (administration, compliance) through the Select Fund Services business.” 
 
Each of Select’s growing list of financial planning partnerships – those that strongly value moving towards independence from institutional influence – demonstrate how to turn the challenges of FoFA into long term-growth opportunities.