BDMs strategically placed to drive planning firm 'accountability'
|
|
Dealer groups can play a key role in ensuring better practice in governance and accountability of member firms though their BDMs, according to Graham Peatey, managing director of practice management services provider Encore group.
Peatey said that BDMs were strategically placed to play this role on behalf of their dealer groups through their representation on the boards of advice of member firms.
“Boards of advice are not just relationship meetings, but rather about driving change to ensure governance and accountability levels in member firms, and to ensure the firm’s business plan is being implemented and on track.”
The role of the BDM as the representative of a dealer group on a board of advice is about making the adviser as the owner accountable for that change.
Speaking at a recent AFA conference, Peatey said that this is “one example of where dealer groups can actively invest in their practices to raise the accountability bar, especially in the looming era of greater regulation in the area of the value of advice and fee transitioning.
“It will take some skills on the part of the BDMs, however, and I think therefore that education will be the key to getting the best out of them in the transition process.’
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
