Revenue from Centrepoint Alliance’s adviser business fell 6% in the six months to December 31 due to its switch to a fee-for-service model.

The move cost the company $1.8 million in the period, and it also lost $900,000 of product rebates.

Revenue for the dealer group totalled $15.3 million in the six months, down from $16.3 million in the corresponding period of 2014.

This was offset by a 3% fall in expenses to $11.9 million.

After a number of bad years for legacy claims, Centrepoint Alliance reduced the sum to $100,000 in the six months to December 31.

But with restructuring costs of $1.4 million, the company reported a pre-tax profit of $1.7 million, down 49%.

MD John de Zwart says the adviser business is continuing to grow.

“The investments we have been making in our team and services will underpin growth in the coming periods. While the markets have been tough, the demand for quality professional advice by Australians has never been greater.

“We are very optimistic about the future for independent advisers.”

The company has 1616 advisers nationally, with most self-licensed. Centrepoint Alliance-licensed advisers total 372, and there are seven salaried advisers, mainly in NSW.

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