NEO Financial Services, the Australian financial planning firm, has appointed the advisory unit of Morningstar Investment Management as its dedicated investment consultant. 

Effective immediately, Ibbotson Associates Australia will provide NEO will a full range of retail investment consulting and advice capabilities, including investment committee and governance oversight, asset allocation and portfolio construction, and dealer and practice management support, the firms said in a statement. 

NEO Financial Services obtained its Australian Financial Services license in January 2011 and has since grown to have some A$600 million ($636 million) in funds under advice. The dealer group specialises in tax-effective investment planning, wealth creation, retirement planning, succession planning and master trust services, among others. 

"Given the new Future of Financial Advice regime changes, it will be dealer groups that focus on enhancing practice development and efficiency. We're confident that Ibbotson will help us establish a differentiated offering based on its strong foundations in academic research, asset allocation and portfolio construction," said Mark Edman, managing director of NEO.

The Australian government's proposed FoFA reforms are meant to "improve the trust and confidence of Australian retail investors in the financial planning sector," according to official FoFA web site. Implementation will begin 1 July 2012. 

Ibbotson records $167 billion in assets under advisement and management as of 30 September 2011.