Wealthtrac Managing Director and CEO, Matthew Johnson, said Wealthtrac had re-signed with Oasis after considerable consideration of the needs of its adviser members both now and in the future. 

“The Wealthtrac model is different to many platforms, as the advisers who use it become beneficiaries of the Trust that owns Wealthtrac.  The agreement withOasis is very favourable for the Trust and will allow our member advisers to benefit from the future growth in value of our platform.” 

Mr Johnson said Wealthtrac did not have its own dealer group or manufactured products, which means advisers who use the platform can be confident that they will not be subject to additional competition or pressures to distribute in-house products.  

“The products on the Wealthtrac investment list are independent of the platform and are there via merit only.  We do not have our own advisers marketing our own products; nor competing for business with other members.  This means our advisers can be confident that the decisions we make as a business are in their interests, rather than just our own.” 

Mr Johnson said Wealthtrac would make further announcements about upcoming changes at the Group in the coming weeks.

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Johnston confirmed that AIOFP expects its member advisers and dealer groups will be far more demanding, vocal and insist on greater involvement and equity in financial products and platforms in the future.

“The major issue of ANZ’s Oasis purchase for AIOFP’s advisers relates to client ownership and equity. Especially as a number of high profile national dealer groups, who built the business with their white label Oasis products, received nothing from the sale to acknowledge both their contribution and efforts,” said Peter Johnston.

“All these dealer groups and their respective advisers received from the transaction was a new product owner of what they thought were their clients. They have now had enough of building someone else’s business only to see it sold off and then having their clients owned by another institution.”

AIOFP predicts that this key event will have ongoing industry significance and will be the basis for a major paradigm shift within financial services whereby advisers in growing numbers will demand greater control and management over their clients. SMSFs will be one option that is expected to continue growing as a solution that provides control and a say in the all important client / adviser relationship.

A properly structured Private Label platform is also another strategy that will address adviser demands. Non-institutionally influenced dealer groups are already reviewing their APLs and only supporting Private Labels that provide client ownership and equity.

Peter Johnston continued, “Over the past 20 years advisers have not sought legal advice on the ownership and structure of platforms despite a steady stream of platform sales to institutions.”

“The message has been heard by advisers as these sales have resulted in the transfer of client ownership – the core asset of all practices – and it must be addressed as a high priority.”

Ongoing feedback from the marketplace and AIOFP members strongly suggests that the Oasis buyout was the last straw for advisers; but more importantly that the institutions are listening and responding to these adviser and dealer group concerns.

Asgard was the first to build a Private Label platform structure three years ago whilst fellow institutions were reluctant to consider alternatives that would acknowledge the adviser client relationship issue. Poor inflows in recent times, has seen a change in some of the major institutions as they adopt a more conciliatory approach.

The subject of client ownership, including these recent developments and changes, will be covered extensively in the Association’s upcoming annual conference to be held in March in Thailand.

“Institutions are realising that an irreversible paradigm shift is underway and advisers will not support a platform product unless it has the ownership and equity issues addressed to their satisfaction,” concluded Peter Johnston.

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