Count flags new accounting spin-off
By Michael Bailey
CountFinancial is preparing to launch a new accounting brand, a new direct share service, has overhauled its member incentive plan, and unveiled a grading system for its advisers during a busy opening day at its annual conference on the Gold Coast last week.
Count has already registered the name ‘CountPlus’ for the mooted accounting business, which would operate on a franchise basis and could potentially list, like fellow accounting consolidator Investor Group, according to Count managing director Barry Lambert.
Member feedback is being sought on the concept for a possible launch in the second half of the year, the same time that a direct stockbroking outsourcing partner, being organised by product development executive Robyn Mohr, will be made available.
The country’s second largest independent dealer group also announced a new remuneration structure for its franchisees built around ‘CTCs’ — ‘Contributions to Count’.
Typically, every dollar of gross revenue generated for Count will earn one CTC, although a higher CTC rate will be assigned to income from more profitable areas, and a lower one to areas where the activity may represent an opportunity cost for Count, such as a member’s repayment of a Count business loan.
These CTCs convert into Count share options, and Lambert calculated that a trebling of the dealer group’s share price would see members effectively repatriated of all of the fees they paid Count in the period since it listed. The existing funds-under-advice model of remuneration would be phased out by 2005-06, he said.
The CTC program will also become available not just to franchisees, but to individual planners who attain a ‘Grade 3’ under Count’s new adviser ranking system.
The Grade 3 ranking will be given as a reward to Count planners who work hardest to expand their skills — and can keep more types of business within the dealer group.
These planners will also have some of their compliance requirements eased. Under the new structure, Grade 3 planners will only have to submit plans worth over $600,000, as opposed to the usual $300,000, for vetting by Count’s head office.
While Grade 1 advisers are only required to be PS 146 compliant, and Grade 2 is assigned to any member with a recognised financial planning designation, the Grade 3 tag must be renewed each year with an examination set by head office.
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