Service and support drive adviser exits

Advisers look to new dealer groups for improved flexibility and control.


By Julie May

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The key reason advisers were looking to move dealer group or establish their own licence 12 months ago was the desire for greater control and flexibility, however, a year on that was less of an issue, with satisfaction around service and support now at the top of the list.

That was the main finding of a recent Investment Trends report that collated feedback from nearly 900 financial planners Australia-wide, the research firm’s head of wealth management research, Recep Peker, said.

Speaking to financialobserver, Peker said of that sample the number of advisers looking to switch or set up their own licence had come down from 14 per cent last year to 10 per cent, which was the natural rate of advisers wanting to shift.

“Control and flexibility were big last year, however, if you look at the research over the last 12 months, what you’ll find is advisers are reporting they have greater freedom and more choice when it comes to products, platforms, software, fund managers, listed investments and insurers,” he said.

“This shows that dealer groups have been responsive to adviser needs and as a result of that only 11 per cent of the 14 per cent looking to move actually did, with just 3 per cent of those saying they did so on the basis that they lacked control.”

Meanwhile in 2015, he said satisfaction with service and support was the key driver edging advisers to move, with others citing dealer group closures and a lack of value for money among their top reasons for considering a switch.

“As a dealer group you have to demonstrate you’re giving advisers the right support,” he said, adding that out of the 10 per cent looking to move, interestingly there were more contemplating their own licence than in previous years, with that figure sitting at 3 per cent, up from 2 per cent in 2014.

“In terms of what planners want from their licensees – more efficient advice processes and a group that helped with client acquisition and retention were crucial.

“Depending on where they are in the life cycle, advisers need dealer groups to evolve, particularly in a post-FOFA (Future of Financial Advice) world where more planners are moving to a complete fee-for-service model and where they need to be as efficient as possible so they can service clients amid heightened compliance and administrative responsibilities.”

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