ASX-listed Sequoia Financial Group has revealed its plans to increase its adviser numbers and licensees to adjust to the shifting landscape of the financial advice industry.
At its annual general meeting, Sequoia announced its strategic objective to be the market leader in the provision of adviser services by increasing the number of advisers that it has the licensee to from 415 to over 1000 by 2024.
The group believes an increased number of advisers is optimal for return on revenue, share cost synergies with clients and creating the premium advice brand. It projects adviser numbers to increase to 450 by end of 2021.
Sequoia chair John Larsen said: "The board of Sequoia believes the financial planning industry has a bright future, as a consequence we are looking to increase our adviser numbers."
In addition, Sequoia said it aims to increase the scale of each of its businesses including Interprac Financial Planning as well as increasing the number of third party licensees using a Sequoia-owned service.
The new strategic objectives come from the shifting advice landscape which has seen an increase in the delivery cost to advisers.
"I think we will see further changes in the financial planning industry, which is a major part of the Sequoia business. We have seen enormous changes in the industry post the Hayne Report over the last 12 months," Larsen said.
Further to this, Sequoia provided an update on its FY2021 budget metrics where it is aiming to increase net profit after tax from $1.9 million in 2020 to $2.85 million.
In the longer term, the group hopes to increase revenue to $400 million by 2024, up from $84.5 million in 2020.
"We along the way will strive to be known as a leader of quality advice and service to our clients," Larsen added.