Major banks AMP and IOOF build Hotel California
The major banks, AMP and IOOF have been singled out as having licensee agreements which might best be avoided by accountants who have an eye to business development, exit or succession planning.
Accounting and financial planning business broker, Paul Tynan said accountants needed to be careful in selecting a licensee as they might find that their future business opportunities and retirement / exit / succession objectives being put at risk if the wrong licensee is selected.
"Some licensee agreements have very strict client ownership stipulations, especially those by licensees that operate within the big four major banks, AMP and IOOF," he said.
Tynan said his business had been approached by a number of accountants for an independent assessment of prospective offers and "many were shocked to learn of these client ownership requirements and their disturbing closeness to the 1976 Eagles song Hotel California".
"The adviser might own the revenue stream but they cannot sell their clients outside the licensee group," he said.
"For those accountants that value independence as the key platform of their client service and advice offering — great care needs to be exercised when assessing and selecting a licensee agreement," Tynan said.
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
