With a large number of advisers currently considering obtaining their own AFS licence, it is vital for them to have a clear vision of how they will run an efficient and profitable practice, who their clients are and what their value proposition is, according to Soula Cargakis, CEO of Associated Advisory Practices.
Many advisers are attracted to the idea of self-licensing because they are frustrated with particular aspects of their current dealer group. Some believe they don’t provide value for money or are too bureaucratic, others don’t like their choice of platforms and systems, or they find their approved product lists and advice templates too restrictive.
Other advisers have become frustrated with poor public perceptions of their dealer group’s parent institution and what their clients may perceive as a lack of professional independence.
Ms Cargakis said that while these are all valid concerns, it doesn’t necessarily mean you should be obtaining your own licence. “Rather it could be that you just need to find a dealer group that is more aligned to your values and business model,” Soula said.
“However, if you do want to take control of your destiny, there has never been more help to guide and support you on this journey to professional independence.” This includes the full range of services from business planning, coaching, integrated CRM and compliance systems, including full compliance templates to help get new licensees up and running.
Ms Cargakis said that in her experience, practices that are most successful, both financially and in terms of life balance, are those that focus on their specialisation and outsource as much of the rest as possible.
“It is critical that licensees focus on their core business of generating revenue and delivering quality advice quickly and early on their new journey.
“There are additional compliance and risk management responsibilities associated with holding a licence, along with some financial risk, however these can be managed effectively with a clear business plan and a healthy culture.
“As a licensee you need to be comfortable taking responsibility for every aspect of your practice and business, including quality of advice, compliance, and risk management. Your professionalism, independence and reputation will be critical to your long term success.
“Most successful licensees have a mentor or strong business partner who can provide guidance, support and direction. Every successful person has help from others – someone to share their challenges, issues and be a sounding board for their plans and decisions,” she said.
AAP, a member of Centrepoint Alliance, is an industry leading partner for independent boutique licensees located across Australia. AAP currently provides support services to over 200 boutique licensees, including practice management, professional standards, AFS licensing, professional indemnity solutions and best practice processes.
Leave a Comment
You must be logged in to post a comment.