New Insignia CEO Scott Hartley aims to ‘accelerate strategy’ amid outflows

Scott Hartley has a big job ahead of him at the wealth manager, amid a hefty drop in adviser numbers and persistent outflows.

Incoming Insignia Financial CEO Scott Hartley. Picture: Supplied

Facing outflows and uncertainty, Insignia Financial is banking on ex-AMP executive Scott Hartley’s “acceleration” plan to lead the wealth manager’s turnaround as chief executive from March 1.

Insignia shares, which have lost over half their value in the past five years, gained 1.6 per cent to $2.22 after the announcement on Thursday.

The appointment comes as uncertainty about a successor for Renato Mota, whose February exit was announced back in October, had been adding to the company’s headwinds amid ongoing outflows.

Insignia chairman Allan Griffiths said Mr Hartley will join “at a pivotal point in the business, and his appointment is key to providing a fresh perspective as we continue into the next phase of executing on our strategy.”

“Scott’s deep experience and strategic leadership will be critical as we continue to build on our established foundations and move forward with clarity and focus on the opportunities our market position and capabilities provide,” Mr Griffiths said.

“I would also like to express my gratitude to Renato for his 20 years of service and dedication to the organisation, five of which as CEO.”

Mr Hartley will join the board as executive director and his remuneration will include a $1.275m fixed salary and a potential bonus equivalent to 170 per cent of his fixed remuneration. In a statement to the exchange, he said he was excited to be joining at a “transformational time”.

“Insignia has an exciting future and I look forward to working with the Insignia team to accelerate execution of Insignia’s strategy,” he said.

The company was “uniquely positioned in the industry, with capabilities in advice, platforms, superannuation, and asset management, and a strong client focused culture which can be leveraged to create value for all stakeholders,” he added.

Mr Hartley served as CEO of AMP’s domestic wealth management business from January 2021 under group CEO Alexis George. There he led efforts to rebuild the company’s culture, performance and reputation, leading an operational turnaround that reduced operating costs by over a third, according to the statement.

Before his time at AMP, Mr Hartley was CEO of superannuation fund Sunsuper from January 2014 to September 2029, and had roles in MLC, Plum Financial Services and JANA Investment Advisers.

The announcement comes ahead of Insignia’s interim profit results due on February 22, which Mr Hartley’s will miss by just a few days. He starts working at Insignia on February 26.

Insignia, earlier this month, revealed a drop in adviser numbers and persistent outflows had offset the positive impact of a market rally in the 2023 ­December quarter.

No institutional clients terminated their mandates during the quarter, but about 186 financial advisers had parted ways with the wealth manager, leaving 1199 in its network as at December 31.

Insignia’s market capitalisation has fallen by close to 80 per cent in the past six years since its reputation was tarnished at the financial services Royal Commission.

The company – previously known as IOOF – last year restructured its operations to split its financial advice business into a new company called Advice Services Co, which Mr Mota ad the time said would be owned and run for advisers.