Advisers urged to embrace corporate super
It’s about time advisers took the corporate superannuation market seriously, according to BT.
It’s about time advisers took the corporate superannuation market seriously, according to BT.
The funds management group has just wound up a series of roadshows in a bid to form partnerships with advisers to sell super to the corporate market.
BT’s senior vice president corporate investment services, Dan McGee, says in order to service the market well, advisers need to align themselves with a product provider which can offer the range of services corporate clients demand.
“Employees are beginning to see super as an investment, especially as their account balances grow,” he says,
“And they are beginning to demand more information about that investment and a greater feeling of control over how it is managed.”
He argues that by forming alliances with BT Principal, advisers will be able to meet those service demands and at the same time, grow their own businesses.
“We can assist advisers with client education and service and we can help them to manage corporate clients. Investment in corporate super today stands at $28 billion. This will grow to $110 billion by 2008. That’s an incredible market opportunity for advisers and they can’t ignore it.”
Speaking at the roadshow, US adviser Bob Hughes told of his 200 corporate clients, 70 of whom have 401K plans with Principal. In ten years, his funds under advice has grown to $US100 million.
Hughes says his experience with 401K plans is that they are door openers to executive clients.
“I leverage the corporate relationship offering executives help with business planning, investment plans, insurance — including health care. The point is, they already know me through their 401K plans, so when they start thinking about other forms of investing, they think of me. I’ve been able to do that because I’ve had a good product provider. I would stress that’s the most important part — finding an intelligent partner.”
Recommended for you
Next year will see AMP roll out an end-to-end solution for its North platform, marking a shift in the firm’s position within the advice technology sector and building on adviser feedback.
My Dealer Services is predicting strong growth in self-licensing next year, citing recent ASIC action against Interprac and the desire for independence as key drivers of the self-licensing trend.
ASIC has handed down a six-month AFSL suspension to MW Planning after the firm failed to replace its banned responsible manager.
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
