Business development lost in FOFA compliance
The Future of Financial Advice (FOFA) changes are causing planners to focus on compliance at the expense of marketing and business development, according to The Advice Exchange.
Managing director Andrew Doquile said marketing and business development had slipped off the radar as the FOFA deadline drew nearer.
The Advice Exchange surveyed more than 200 advisers and found that more than 60 per cent rated corporate governance as the number one or number two service they valued most in exchange for their dealer fees, while over 55 per cent ranked administration and processing support as the most important or second most important service.
Only 9 per cent viewed marketing and business development as delivering the most bang for their buck, with 11 per cent ranking it in second place.
Doquile said advisers should take advantage of dealer group services to sustain long-term profitability.
"Advisers need to ensure they maintain focus on growing their business, regardless of what changes are happening at the regulatory level — particularly if they are planning on selling their practice in the next five to 10 years," he said.
Over one fifth (22 per cent) of respondents said their business was ready for sale, with most already having a list of potential buyers in the works.
Doquile said buyers looked for long-term track record of earnings and client stability.
"So ensuring you are targeted with the types of clients you want to attract will make the business attractive to buyers down the track," he said.
"You need to ensure the potential firm or dealer group understands your business and that your growth plans align if you are to realise the best possible price."
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