MLC is pushing for its advisers to make greater inroads into the corporate superannuation market to counter the growing threat of accountants moving into the financial planning industry.
The general manager ofMLC Corporate Solutions, John James, says referrals generated through accountants have traditionally been the lifeblood of many of MLC’s dealer groups, including the high-end Godfrey Pembroke (GPL).
But as more accountants make the transition across to financial planning, James says advisers will need to find other sustainable referral networks.
“GPL has traditionally got its referrals from accountants. The threat is that those accountants will get into financial planning,” he says.
James says the corporate superannuation market presents advisers not only with an opportunity to market super solutions to employers, but also to access a captive audience of potential clients.
“We like to think [corporate super] is an alternative strategy for growth. It is not about corporate super, it is about access to the workplace,” he says.
The strategy has already been adopted by GPL’s Margaret Street practice in Sydney. The business, headed by practice principle Nick Economidis, generated only two per cent of its revenue from corporate super in 2001. Next year, however, the group is expecting up to 40 per cent of its revenue to come from corporate super clients.
“With traditional referral sources under pressure, we wanted to protect our business from a possible economic recession, grow our asset base irrespective of markets and safeguard our future referrals,” Economidis says.
