Momentum Intelligence’s Dealer Group of Choice Survey 2016, released last week, has found that Australian financial advisers thinking about leaving their licensees are increasingly attracted to non-aligned dealer groups. This comes as no surprise. It is inevitable that good, professional practices will question the perceptions and the value of being associated with being part of a bank-owned licensee.
Earlier this year, I chose to start up an independently owned financial planning business, Assure Wealth, as an authorised representative under the banner of Centrepoint Alliance Financial Advice. Prior to setting up my own advice business, I was national manager, dealerships, for Suncorp Life, responsible for managing Suncorp’s two self-employed AFS licensees and five practice development teams.
In choosing a licensee, the deciding factors for me were, first and foremost, independence, closely followed by scale, risk management and compliance capabilities and technology.
Having worked in the industry for the past 13 years, I knew that whomever I partnered with needed to have the size and scale to be able to provide my business and my clients with resources and protection, in terms of risk management and compliance.
Larger independent groups with scale have a very strong future ahead of them. We have seen a lot of independently owned licensee groups flourish in recent times because they have established a unique point of difference and value proposition. They are niche, and they are consistently seeking to innovate and grow.
In the past financial year, Centrepoint Alliance has recruited 59 new professional wealth advice firms, and more than 10 new professional advice firms this financial year.
Feedback ‘overwhelmingly positive’
Centrepoint Alliance’s managing director John de Zwart says feedback from advisers who make the switch to a non-aligned dealer group is overwhelmingly positive.
De Zwart says most of the advisers who joined Centrepoint moved from institutionally aligned or owned distribution models. For them, too, independence is a key requisite, as is the level of support provided in resources, education, tools and expertise.
More and more quality advisers are looking for an adviser service provider that empowers them to deliver high quality advice and choice of leading solutions for their clients. And another point of differentiation is culture – creating an environment that empowers professional advisers and independent business owners.
Independent advisers need strong systems and support for our practices, while offering choice and flexibility in how we serve clients. Not being tied to any major institution, fund manager or platform, we are able to source the best-of-breed client solutions, based on the needs of advisers wanting to serve their clients’ best interests.
While the industry has been through a lot of turmoil, the future is bright for motivated professionals who are focused on providing great outcomes for their clients and want to build a business of enduring value. Advisers need support that is focused on helping them deliver to their clients, rather than simply acting as the sales and distribution arm of an institution.
Pat Casey is managing director and a financial planner at Assure Wealth, an authorised representative of Centrepoint Alliance Financial Advice.
