Martin Lee @ Sg
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Closure of ipac Singapore

Financial planning firm ipac has announced the closure of their Singapore and Hong Kong business.

It puts an end to an unique advice-centric business model where advisers are paid a salary rather than commissions. Apparently, this model has not worked well for ipac, who made a loss of $4.5 million in 2010 and a cumulative loss of around $34 million since it started operations here in 2003.

Clients of ipac who invested in their Dublin-domiciled multi-manager fund will also have to unwind their positions as the funds will be shut down. This process will take a few months.

If you think financial planning is a lucrative business, think again. The attrition rate of advisers in the industry is very high and most firms have to contend with rising overheads and (ever increasing) regulatory requirements. Of course, for those who survive, their share of the pie will be higher.

Closure of Wealth Manager ipac hits Singapore, HK clients (Business Times)

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