Dealer groups may outsource to maintain quality advice
Fast-expanding dealer groups may need to look at outsourcing technical and strategic advice solutions in order to retain a high standard of support for advisers and stay off the regulator’s radar.
Assyat David, director of financial planning strategies business Strategy Steps, said that since the Australian Securities and Investments Commission (ASIC) indicated its intention to target aggregator groups, these groups needed to ensure advice quality was maintained.
She said there was a justifiable fear that rapid acquisition could deteriorate support services for advisers and may increase breaches of compliance obligations.
She added that increasing compliance was a challenge not only for groups, but also for individual advisers who may need assistance to give their clients information on legislative changes and relevant strategies.
“Quality outsourcing solutions empower financial planning groups to grow, while assisting advisers to remain productive and client focussed in the face of constant market and legislative changes,” she said.
David said Strategy Steps’ Desk Caddie, which it acquired from Deutsche Asset Management in 2009, provided advisers with legislative and technical updates as well as planning strategies that could help maintain advice quality.
Recommended for you
BT is to launch a new low-cost “Focus” investment menu for its Panorama platform this October, in partnership with Vanguard, seeking to compete with industry superannuation funds.
Net gains of financial advisers have already doubled since the start of FY25, according to this week’s Padua Wealth Data, with momentum gathering pace far faster than the previous financial year.
National advice firm MiQ Private Wealth has appointed a new chief executive to lead the business through a “transformative era” after penning a partnership deal with AZ NGA earlier this month.
WT Financial’s managing director, Keith Cullen, believes the firm’s Hubco model with Merchant Wealth Partners will be a “repeatable growth model” for the business as it scales its adviser numbers.
