Synchron has announced it is aiming for a conservative net growth of 9-10 per cent per annum over the next two years, a rate which would lift the number of authorised representatives under its banner from 427 to 500 by September 2018. Based on current numbers, this growth would make Synchron the second largest licensee in Australia by risk new business and the fifth largest by adviser count.
“We are looking for slow and steady net growth, but even so, we realise we have our work cut out for us to reach the magic 500,” Synchron Director, Don Trapnell said. “This is because statistically, for every 100 people who make an enquiry about joining Synchron, only half end up meeting our rigorous selection criteria to become authorised representatives.”
Mr Trapnell said the high rejection rate occurs for a variety of reasons, the main one being that some advisers simply do not meet Synchron’s very stringent compliance standards.
“Compliance must be the number one concern of all our advisers,” Mr Trapnell said. “We want to know that their businesses are placing the interests of clients first, in a compliant and businesslike way. This approach also helps to build sustainable advice businesses – if the client is happy, the business is likely to be sustainable.”
Mr Trapnell said Synchron is becoming increasingly attractive to advisers offering financial planning and superannuation advice. “In the past, we were perceived as a risk-focussed licensee however today 40% of our revenue comes from financial planning and superannuation activities. Advisers also seem to be attracted to us because of our size – we are now one of the largest licensees in the country; the third largest licensee overall by risk new business and the seventh largest by adviser numbers.”
The growth announcement follows the recent appointment of Gee Vas as State Manager, Queensland where Synchron’s growth efforts are currently focused. “Today, we have 119 authorised representatives in Queensland which we would like to grow to 130 by this time next year and 140 by September 2018,” Mr Trapnell said.
Formerly a Business Development Manager with Zurich, Ms Vas has a decade of experience in both investments and insurance and has also previously held roles with TAL and Aviva Australia (since acquired by MLC Limited).
The appointment of Ms Vas follows the appointment of Jason Milosevski as State Manager, Victoria this time last year. With more than 12 years’ experience in the life insurance industry, Mr Milosevski previously worked for Zurich as a Business Development Manager and also held roles with AMP and AXA.
Mr Trapnell said despite his intention to slowly relinquish day-to-day management of Synchron and a similar decision by fellow Director, John Prossor, the business will continue to operate as a leading licensee and ongoing concern.
“We recently appointed Michael Jones as compliance manager to allow John to start the process of very slowly exiting the business and taking up a role as non-executive director,” he said. “Within two years, I intend to seek a general manager for Synchron to enable me to do the same.”
Mr Trapnell said this very slow process, which will take years, will help instil the Synchron culture into the new Synchron management team. “There is no reason in the world why Synchron cannot continue to grow and prosper under that new team, with John and I in the roles of non-executive directors – but all in the fullness of time,” he said, “not in the immediate future.”
