How much conflict is there within some integrated business models?
You have had a hard week at work. It’s Saturday…. at last. You sit down on the couch to relax and read the Sydney Morning Herald, and suddenly an article by Adele Ferguson hits you between the eyes….“IOOF’s boiler room throws customers to the wolves”. You are gutted.
You work for one of the IOOF brands or related entities. You work for Bridges, Shadforth, Lonsdale, Plan B, Perennial Investment Partners, Australian Executors Trustee, Ord Minnett, Western Pacific or Consultum Financial Planners. It’s okay, this has got nothing to do with you or your business.
You get to work on Monday, and your customers start calling and emailing you. They realize you are part of the IOOF Group. They want to know if this thing they read in “the Herald” has got anything to do with your business. The Greens want a Royal Commission. Nationals Senator John Williams is going ballistic.
When the Independent Order of Odd Fellows began in 18th Century England, it was deemed odd to find people organized for the purpose of giving aid to those in need without recognition and pursuing projects for the benefits of all mankind. Now in 26 countries, including Australia which was founded in 1846 – the forefathers must be turning in their graves when they read about the alleged goings on within IOOF. It appears likely IOOF has joined the ranks of CBA, NAB and Macquarie in terms of questionable practices within their wealth management divisions.
The problem with the integrated business model is that when there are a few bad apples, customers often fear the issues are endemic across all brands. I am certainly not suggesting this to be the case, and I should register my respect for a number of businesses within the IOOF stable.
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Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience. David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
