WT Financial Group Limited
Climate Impact & Sustainability Data (2019, 2022, 2023, 2024, FY2019, FY2020)
Reporting Period: 2019
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Upheaval in the financial advice industry due to the Royal Commission into the industry.
Mitigation Strategies
- Successful transformational restructure of its business and operations to reduce its focus and reliance on business-to-consumer (B2C) and non-recurring revenue, to emerge as a primarily business-to-business (B2B) focussed enterprise targeting predominately recurring revenue lines.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2022
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Regulatory and Licensing Requirements and Compliance
- Legislative and Regulatory Changes
- Management of Future Growth
- People risk
- Fraud or embezzlement of Group or client funds
- Client dispute and compensation claim risk
- Investment impairment risk
Mitigation Strategies
- comprehensive compliance and risk management framework regime; extensive internal monitoring and reporting; external legal and compliance advice
- close management of businesses operations to optimise results, and the implementation of the risk management strategies
- succession planning; appropriate restraints to protect ongoing business; market-competitive remuneration and career development opportunities
- comprehensive risk management framework that includes fidelity and professional indemnity insurance, and appropriate policies and procedures that are regularly reviewed
- significant professional indemnity insurance; $1.91M provisioned against known and unknown matters; $2M provision accounted for in the Company’s financial statements by way of the Synchron Warranty Lockup
- claw back provisions under its authorised representative agreements
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2023
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Regulatory and Licensing Requirements and Compliance
- Legislative and Regulatory Changes
- Management of Future Growth
- People risk
- Fraud or embezzlement of Group or client funds
- Client dispute and compensation claim risk
- Investment impairment risk
Mitigation Strategies
- comprehensive compliance and risk management framework; extensive internal monitoring and reporting; external legal and compliance advice
- close management of business operations to optimise results, and the implementation of the risk management strategies
- recruitment of experienced operational personnel and the use of appropriate external consultants and contractors
- succession planning; appropriate restraints to protect ongoing business; market-competitive remuneration and career development opportunities
- comprehensive risk management framework that includes fidelity and professional indemnity insurance, and appropriate policies and procedures that are regularly reviewed
- comprehensive risk management framework and maintains professional indemnity insurance; claw back provisions under its authorised representative agreements
- close management of business operations to optimise results, and the implementation of the risk management strategies
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2024
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Regulatory and Licensing Requirements and Compliance
- Legislative and Regulatory Changes
- Management of Future Growth
- People risk
- Fraud or embezzlement of Group or client funds
- Investment impairment risk
- Client dispute and compensation claim risk
Mitigation Strategies
- comprehensive compliance and risk management framework; extensive internal monitoring and reporting; external legal and compliance advice
- close management of business operations to optimise results, and the implementation of the risk management strategies
- succession planning; appropriate restraints to protect ongoing business; market-competitive remuneration and career development opportunities
- comprehensive risk management framework that includes fidelity and professional indemnity insurance, and appropriate policies and procedures that are regularly reviewed.
- close management of business operations to optimise results, and the implementation of the risk management strategies
- comprehensive risk management framework and maintains professional indemnity insurance; claw back provisions under its authorised representative agreements
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: FY2019
Environmental Metrics
Social Achievements
- Increased the number of advisors in Wealth Today Pty Ltd from 42 to over 120 by mid-2019.
Climate Goals & Targets
Long-term Goals:
- Scale to well in excess of 500 advisors over time.
Medium-term Goals:
- Scale to 250-300 advisors in the mid-term.
Short-term Goals:
- Grow to 150-160 advisors in FY2020.
Environmental Challenges
- Upheaval in the financial advice industry due to the Royal Commission.
- Potential for an adversarial regulatory environment.
- Risk of over-zealous regulatory actions.
- Risk of reputational damage and impact on licensing conditions.
- Risk of significant increases in professional indemnity insurance premiums.
- Risk of insufficient personnel to manage growth.
- Risk of inadequate technology and resources to capitalize on growth prospects.
Mitigation Strategies
- Successful transformational restructure to reduce focus on B2C and non-recurring revenue.
- Acquisition of Wealth Today Pty Ltd.
- Rationalization of B2C financial advice operations and significant reductions in fixed overheads.
- Recruitment of experienced operational personnel.
- Use of appropriate external consultants and contractors.
- Diversification of product and service offerings.
- Succession planning and appropriate restraints to protect ongoing business.
- Market competitive remuneration and career development opportunities.
- Fidelity and professional indemnity insurance held and appropriate policies and procedures implemented and regularly reviewed.
- Close monitoring of investments.
- Close management of business operations to optimize results.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: FY2020
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- COVID-19 pandemic impact on financial advisors and clients, resulting in reduced new business revenue.
- Potential for an adversarial regulatory environment, leading to increased costs and reputational damage.
- Risk of attracting and retaining personnel to manage growth.
Mitigation Strategies
- Implementation of work-from-home and video conferencing solutions to maintain client service.
- Diversification of product and service offerings.
- Succession planning and competitive remuneration to retain key personnel.
- Fidelity and professional indemnity insurance, along with robust policies and procedures.