Client-centricity trumps product distribution
Traditional licensee models predicated around a distribution mind-set are unlikely to survive the industry shift towards a professional services orientation, according to Fortnum Financial Group chief executive, Neil Younger.
Promoting Fortnum’s newly-created Professional Advice Framework, Younger said he believed that to be a partner of choice and relevance for self-employed financial planning practices, the industry had to move away from the typical Australian financial services licence (AFSL) licensee construct and evolve around two clear foundations: advice services and business services.
He claimed it was critically important for both licensees and advice practices to future-proof their business and cited the Professional Advice Framework as being an appropriate example.
Fortnum kicked off its new Professional Advice Framework with the release of a white paper earlier this month in which it argued that a client-centric approach would trump product distribution.
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