Creating a point of difference from other dealer groups is the reason for the jump in adviser numbers at Australian Financial Services (AFS), chief executive officer Peter Daly says.
“It sounds like a cliché, but I have told my management team that if they built the points of difference, the advisers will come,” he says.
“The core values we are offering are to identify ways where we can be proactive on income generation and on profitability.”
Daly says increased profits means the practice is increasing its value, which in turn is good for the dealer group.
“The more practices we make successful will increase our own success,” he says.
AFS is achieving these goals through a variety of development programs that are being applied to the practices in the group.
“We are undertaking a diagnostic interview with the practice asking planners where they want to be in three years and five years time,” Daly says.
“The question is how do we get the practice to those levels?
“Our ability to demonstrate we have the tools means we are offering a point of difference,” he adds.
Daly says he expects AFS to improve a practice’s growth by 20 per cent and profitability to the same degree using these tools. The dealer group has also been developing alliances to boost areas such as generating leads and better deals with fund managers and their products.
“AFS has no formal enforcement to make advisers use certain products, but we have built systems that will select a provider for certain situations,” Daly says.
“For example, with end-of-year tax structures, we talked to Palandri about its tax-effective project and we sold about 80 per cent of the project.
“This meant a better return for our advisers, which proves working together brings benefits for them.”
AFS has attracted 30 new advisers to the group during the year and Daly says retention levels are almost 100 per cent.
“Since I joined AFS 14 months ago, we have lost only one adviser,” he says.
“There is a degree of excitement as advisers can see the dealer group is adding value to their practices.”
The new advisers have come from across the industry, but he says the focus is on attracting professional practices.
“AFS has also established a nursery for dynamic individuals who can grow into the dealer group,” Daly says.
— John Wilkinson
