Looks like things are starting to tick along nicely at CAF and...

Looks like things are starting to tick along nicely at CAF and John de Zwart certainly looking like a good appointment.




Centrepoint in third-party talks

17 Mar 2014

By Kate Kachor

Listed financial services firm Centrepoint Alliance is in discussions with third- party providers over potential research, portfolio and investment options for its wealth management division.

The company sent out requests for proposals (RFP) last month in relation to the investment needs for its in-house ‘smart practice’ project, Centrepoint Alliance managing director John de Zwart said last week.

“We’ve got an RFP out in the marketplace at the moment around the investment needs of smart practice - that goes from research to model portfolios, through to adviser desktop solutions,” de Zwart told financialobserver.

“That’s been out now for over a month and we’ll start to lock that in over the next month or so.

“All the majors and the mid-tier players have provided a response to that and we’re just going through due diligence around those at the moment to create a shortlist.”

The company would work with its financial advisory network to determine the best outcome from the discussions, he said.

It had been researching practice profitability with the view of taking 50 per cent of the ‘cost to serve’ out of its advice businesses over the next three years, he said.

“I think there is so many opportunities out there to do that and really give a lot more time back to the adviser who is serving the customer and meeting their needs,” he said.

The ‘smart practice’ project is part of the company’s growth strategy to increase the profitability of the advice and paraplanning network within its Professional Investment Services (PIS) dealer group.

“The transformation from us is complete and we’re now moving into a growth phase,” de Zwart said.

“We think our proposition is competitive in the marketplace; it’s continuing to evolve. We see a lot of opportunities to continue to improve practice efficiencies and practice profitability.”

De Zwart joined Centrepoint in April last year, replacing Tony Robinson. Following his appointment, he undertook a restructure of the company’s wealth division.

“I think the culture has changed quite dramatically within the organisation. There is a fresh new team in many places, but culturally we are very much there to support advisers to give their clients the best quality of advice,” he said.

“That’s all cascading through and I think the organisation is seeing the benefits of that. Adviser engagement was strong across our network and we’re seeing that through the AAP (Associated Advisory Practices) network and PIS. We are well positioned for growth.”

Centrepoint Alliance last month reported an increase in total revenue of 2 per cent to $27.4 million for the six months to 31 December 2013, with net advice and product revenue declining by 1 per cent due to the impact of adviser losses in 2013.


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