We were looking for backup services, plus the proper computer facilities to deal with our clients in terms of providing financial planning, investment and risk advice. In our firm we offer advice on both investments and risk products.
We wanted a fully operational computer system to provide the most comprehensive reports to clients. We also wanted the backup technical service from our dealer group in terms of compliance issues and also for expert advice, if we came across problems in areas like social security and superannuation.
Another thing we were looking for was a group that would provide us with ongoing training. We’re not aligned to any funds management company, so we needed our dealer group to be able to provide this service to us.
Shane Bond.
Proper authority holder,
Australian Financial Services, Melbourne
There are five or six things dealers expect from proper authority holders, though you need to bear in mind it would differ from dealer to dealer, depending on the remuneration arrangements.
Number one is obviously a proper authority license.
Number two is sufficient training in professional development and the operation of a business. Professional development training is the responsibility of the proper authority holder with assistance from the dealer. In terms of business operation, a proper authority holder needs to have enough training to ensure consistency of output. This is of paramount importance to me as a dealer.
Another important element, which the dealer should be providing, is good support systems. There should be nothing a proper authority holder should have to put their hands in their pockets for.
Proper authority holders should be members of the Financial Planning Association and they should pay for their membership themselves.
A good dealer will provide personal indemnity insurance and should supervise the work, because ultimately, their name is on it.
Leonie Henry
Licensed dealer in securities,
Henry & Co, Brisbane
Most proper authority holders are looking for a dealership with compatible thoughts on how to run a business, particularly in terms of integrity and ethics.
They want to feel that their expertise is valued and supported by the dealer.
Proper authority holders also want to have the ability to develop their own practice and to have control and ownership of the process. They should feel they are involved in the decision-making process on the direction the company is taking. If this does not happen, then the proper authority holder will look somewhere else.
A proper authority holder is looking for a fair and reasonable remuneration policy, as well as support in software, marketing, business building and succession planning.
But the key thing they look for is a dealer they feel comfortable with, who they feel is ethical.
John McInerney
Director and authorised representative
Totally Independent Financial Planning, Melbourne
A full dealer’s licence and a life brokerage. I also look for a flat-based fee rather than the dealer group taking a percentage of earnings.
I like a small head office administration with everything done electronically, such as commission statements and e-mail. You really need the latest in technology.
Another key factor is getting top quality financial planning software. We’re in the process of changing our software at the moment and we’re really anxious that this goes smoothly.
Belonging to a dealer group with their own master trust or wrap account facility that the adviser owns is also important, as is the ability for the adviser to be a shareholder in the group and have a say in what’s going on.
One of the key elements that I look for is the ability to talk to other advisers in the dealership and swap advice with them. No one adviser knows everything, and I certainly look for this.
Having a parent partner is also a really good thing to protect the business. Others might argue otherwise, but I think it’s good to have a big brother partner of some description (such as a funds management company).
<I>Rod Dell
Proper authority holder and life broker representative
Australian Financial Services, Mt Martha VIC.
