Financial planning groups are looking to beef up adviser numbers as the push to gain critical mass continues unabated.
According to a preliminary audit of the financial planning market by the Paul Resnik Consulting Group, the vast majority of dealer groups are looking to increase the number of advisers employed under their banner. Most are also looking to bolster the number of paraplanners.
The preliminary audit quizzed 10 major adviser groups made up of 1500 advisers with total funds under administration of more than $30 million. The group hopes to complete a more complete audit of the financial planning industry over the course of the year.
While adviser number continue to boom, the number of products available to advisers within the groups is also on the rise. The study found approved lists are expanding in most dealer group.
It also found that advisers acting for a dealer group are rarely allowed to stray from the approved list of the dealer group. Shares recommendations are also taken seriously with most advisers only permitted to recommend shares on an affiliated stockbroker’s recommended list.
When it comes to clients, advisers are successfully targeting high net worth individuals. The audit found that clients with portfolios of more than $100,000 were plentiful. Most clients had been with the dealer group for less than five years, including a high proportion which had spent less than three years with the dealer group.
There was a full spectrum of opinion on the ideal number of clients to service.
Advisers are eeking out a living on as few as 100 clients up to as many as 300 clients.
Dealer groups who are interested in participating in the industry audit should contact Beverly Houterman or Chris Emery at Paul Resnik Consulting on (02) 9262 1155.
