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Kepa not keeping regional roles

[UPDATED] Dealer group Kepa is disestablishing positions amid allegations that it is suffering a lack of revenue growth.

Thursday, March 17th 2016, 7:30AM 5 Comments

Rick Irvine

South Island key account manager Rick Irvine and central region key account manager Rochelle Hill have been made redundant because their roles have been disestablished. Members were advised at the beginning of March.

Irvine then later sent an email to Kepa members, which he called "clarification of Kepa advisement" telling them that during the consultation process, Kepa had said the decision was made because the group's revenue had not increased and the group was not achieving its profitability targets.

It was not because of performance concerns or anything specific to Irvine or Hill.

He said the decision was made to restructure Kepa's distribution model with the view of reducing costs.

It is creating three new roles, of which two are administrative.

Irvine said he and Hill had been invited to apply for the roles but it seemed unlikely that there would be a position available outside Auckland.

Irvine said: "I wish to take this opportunity to thank each and every one of you [advisers] for your support and assistance over the past 18 months. I have built some fantastic relationships, made some great friends, and had an absolute blast working with you all, and seeing businesses and people grow, evolve and become more successful. I will truly miss being a part of your future growth and successes."

Kepa chief executive Jeff Page did not want to comment but rejected the allegation that there were profit problems. He said resources were being reallocated in a more efficient way.

Kepa was the result of the merger of TNP and Ginger Group.

Page has been promoting the idea that dealer groups could attain a QFE-type status under a review of the Financial Advisers Act.

Nicola and Kevin Smee cut ties with Kepa last year, taking their Solutions team of advisers with them.

Industry insiders said Kepa had been attempting to move to a more "corporatised" model amid suggestions that dealer groups were becoming a less relevant proposition for advisers. 

Tags: Kepa

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Comments from our readers

On 22 March 2016 at 1:45 pm Donald said:
The fact that Irvine's email had no suggestion of sour grapes I tend to take his word for the reasoning behind the disestablishment of his and Hill's positions. It is a shame to see Kepa floundering, like many organizations biggest is not always best. There is only so long that attracting advisers by waiving a financial carrot for the favoured few can continue without an impact on the bottom line.
On 25 March 2016 at 7:30 pm The Oracle said:
Can’t offer value and give your revenue away Mr page to a few recruits from other groups and expect to be able to run a long term business that provides value to all your members, shareholders and provider partnerships. Revenue will be needed later this year as members look to their supporting organisations for assistance, help and guidance around meeting regulatory changes head on. I for one doubt this group will survive, I just wonder how long the providers will keep propping them up?
On 29 March 2016 at 9:09 am Jeff Goldsworthy said:
As an active member of Kepa, I speak volumes for the past an ongoing support we receive from Kepa. To those critics who comment under disguise, there is a significant difference between "Commercialism" and "Sensationalism"

Jeff Goldsworthy
Authorised Financial Adviser
On 29 March 2016 at 9:29 am Jeff Goldsworthy said:
As an active member of Kepa, I speak volumes for the past an ongoing support we receive from Kepa. To those critics who comment under disguise, there is a significant difference between "Commercialism" and "Sensationalism"

Jeff Goldsworthy
Authorised Financial Adviser
On 1 April 2016 at 3:17 pm Graeme Lindsay said:
I suggest that @Donald and @Oracle must have information from sources other than the article - nowhere did it say that Kepa is "floundering" nor did it make any claims about Kepa giving revenue away to selected recruits.

Jeff Page is an astute operator and if Kepa's revenue is falling below expectations, he is acting as a responsible CEO by doing whatever restructuring is necessary to correct the problem.

Whilst I don't agree with everything he says, (viz. the QFE idea...), I do respect Jeff for his track record and integrity! He was an effective manager for AEtna before his sojourn in Australia and then his record with Tower was excellent.

So, @ Oracle, I for one have no doubt that Kepa will survive, knowing Jeff's abilities and skills.

Disclosure: I am a (very inactive) member of Kepa.

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