LFG plans to more than double in size by 2028

Link Financial Group (LFG) is planning a renewed emphasis on growth, as well as technology development, and is aiming to more than double in size by 2028.

Chief executive Josh Bronkhorst told the group's conference in Christchurch that the next five years will be “a defining period.”

“Over the last 12 months, we've taken the foot off the accelerator in terms of growth,” he said, adding that the group took “a real deep-dive look” at the business, focusing on ensuring its systems were working properly.

The company wanted to work on the best way to help its advisers deliver the best possible advice to customers, at the same time as being compliant with regulatory requirements.

To ensure the group doesn't just reward volume, it will be introducing some quality measures in the next three or four weeks.

“We've got to the point where we're measuring it as it should be measured.”

That process has meant LFG has had to disqualify some advisers - a step which was “absolutely necessary” to ensure the quality of the people operating under the group's licences, Bronkhorst said.

“It's all about quality advice and the end consumer benefitting.”

In November last year, Bronkhorst sold a majority stake to New Zealand Home Loans (NZHL) - a sister company to Kiwibank, with both ultimately owned by the Governmentbut continues to run the business.

The alliance with NZHL offers the group “a huge amount of leverage,” and management is currently working on efficiencies across the two businesses.

NZHL chief executive Kip Hanna said the alliance broadens the opportunities available for advisers as well as providing referral opportunities, but the two groups will “essentially remain separate propositions.”

Asked by the moderator for a rugby analogy, South African-born Bronkhorst said: “We're going to tackle this market brutally.”

Hanna was quick with a rejoinder: “Without getting caught out by the ref!”