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SMS - Strategies Day 2016

Millennium3 in talks with new recruits

05-Sep-2014

By Julie May

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ANZ-aligned dealer group Millennium3 may have fewer advisers than this time last year but it says it has a solid pipeline of businesses looking to join its ranks.

In an interview with financialobserver Millennium3 chief executive Richard Klipin said the licensee had 420 advisers and was in discussions with a number of businesses from both independent and institutionally aligned dealer groups about coming on board.

While Klipin wouldn’t be drawn on whether the movement of advisers across the industry could in part be due to the vertical integration debate, he did say, “some advisers think the grass is greener here and some think the grass is greener somewhere else”.

Whether the industry could benefit from an adviser register and whether it was beneficial to classify advisers based on licensee ownership were also responses Klipin said were better provided by Millennium3’s parent company, ANZ.

“Grandfathering has certainly been an issue for advisers looking to move, as it essentially landlocked people until they felt comfortable in making a decision,” Klipin said.

“A temperature check of Millennium3 advisers tells us they’re comfortable in the world post FOFA [Future of Financial Advice].

“All advisers went through a tough time after the global financial crisis and throughout the reforms, and while there is still a lot of regulatory scrutiny, markets have rebounded and our advisers are really getting back to business.”

Klipin said Millennium3 offered an approved product list that reflected choice and met client requirements.

“Adviser practices and principals can grow effectively at Millennium3, and our three key focuses for entry are around leadership, advice and around community.”

Despite Millennium3 reporting a strong pipeline of recruits, research from Investment Trends released yesterday said aligned dealer group channels might be at risk, with a 55 per cent increase in planners intending to switch dealer groups in the next 12 months.

This translated into a total of 10 per cent in a study of 1038 advisers, up from 6 per cent.

“We began measuring dealer group satisfaction for the first time in this year’s study, and found that planners working in majority independent dealer groups had higher levels of overall satisfaction compared to those working in bank or institutionally aligned dealer groups,” Investment Trends senior analyst Recep Peker said.

“As expected, dealer groups that have more satisfied planners typically have a smaller proportion planning on leaving.”

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