Richard Holden, board member for the restructured entity and principal of Milestone Financial in Canterbury, said that with the impending implementation of the Financial Services Legislation Amendment Act (FSLAA) and changes to the Financial Advisers Act, firms now need both size and depth to accommodate the changes.
Milestone Financial is already developing a central servicing facility which will enable advisers to tap into compliance services, governance, marketing, technology and much more. The scale of the entity will also allow for adviser career progression, succession opportunities and the purchase of businesses from those advisers wishing to retire.
Fellow board member Ricky Bennett and principal of Milestone Financial in Queenstown said that “The JV concept differs from the corporatisation model in that it is a collaborative or co-operative approach, which allows individual practices to benefit from the scale of the corporate but not be culturally swamped by it.
“We’re bigger and stronger, but we haven’t lost the personal, individual, touch”.
“We recognise that advisers know clients and their preferences better than a board of directors and this new JV recognises and supports the unique value offered to clients by non-aligned, autonomous, advisers spread throughout New Zealand,” he said.
Holden said that the restructure will be good for both clients and advisers and will herald new options for advisers who may want to join a financial advice provider and not be constrained by the straight jacket approach of a large corporate.