Around 170 advisers will spend Christmas mulling their future after Suncorp Life’s shock decision to launch a six-month transition out of its self-employed, aligned adviser networks, Guardian Advice and Suncorp Financial Planning.
The advisers are believed to be surprised at the decision which gives them until mid-next year to find an alternative future.
The company has nominated three dealer groups as preferred suppliers for advisers seeking a new license solution, including Infocus Wealth Management, Centrepoint Alliance and Bombora Advice.
Infocus’s managing director, Rod Bristow, says the Suncorp Life advisers have “big decisions to make – I do feel for the guys”.
He says advisers looking to find an alternative dealer group by June 30 would have to effectively make a decision by April.
“The process takes four to six weeks to move someone from one licence to another,” he says.
“Doing it in less time than that probably means you’re not ticking all the boxes.”
Professional Planner sent a series of questions relating to the advisers’ future to Suncorp Life, including whether advisers would receive any financial assistance, what the response from advisers has been, and the future of the people who previously ran the Suncorp advice business.
A focus on direct
The company did not answer a number of questions, but provided a general statement saying it wanted to simplify how it manages its distribution and focus on partnerships with its IFA networks, primarily through Asteron Life. It also wants to focus on providing products direct to customers through its brands.
Suncorp Life also said it was in the early stages of discussions and was working with the advisers to identify options and make the transition as easy as possible.
“These options might include, but are not limited to joining another dealer group, establishing their own license, forming their own dealer group with other advisers or retiring from the industry,” a spokesperson said.
“These are only options, and advisers will ultimately need to make their own decision.”
Infocus’s Bristow says Suncorp’s criteria for preferred partners included independent ownership free of any institutional ownership, a strong compliance record, good technology, a good reputation and brand in the market, and a full-service dealer offering.
He says Infocus has already begun discussions with some advisers outlining its model that focuses on growing revenue, increasing efficiency and managing risk.
But Infocus did not have a target for how many they would like to transition.
“It’s a good opportunity for our business,” he says. “But we’re not that focussed on the number. Our recruitment process is all about the quality of the adviser’s business rather than the number. We moved away from talking about adviser numbers a while ago because it’s a pretty crude metric.”
Information sessions
Bristow says Infocus is also participating in a number of information sessions that Suncorp Life is holding for the advisers. “Suncorp is providing a quite structured process to give them information,” he says.
Bombora Advice’s managing director, Wayne Handley, says his organisation was pleased to have been selected by Suncorp and was already speaking with advisers.
“We have had some contact with advisors already,” he says.
“We look forward to engaging quality practices over the next few months.”
Centrepoint Alliance did not wish to comment on its agreement with Suncorp Life.
