Industry licence is Now’s time for change
NowFinancial Services is attempting to migrate all multi-agents who use the financial planning dealer group across to broker representatives, a process it aims to complete by March 2003.
The move, prompted by the need to move across to an Australian Financial Services Licence (AFSL) under the Financial Services Reform Act (FSRA), was agreed to at the end of August at a meeting of ‘Club Now’, a regular gathering of Now adviser heavyweights.
The members decided the move across to the ASFL for Now, expected to occur by mid 2003, would be easier if multi-agents become broker representatives before a licence application is tendered.
“Though the group is not closing its doors to multi-agents, the response that Now has received from its constituents leaves us confident we will see at least 60 per cent of multi-agents transitioned by March 2003,” Now’s sales operations manager Jodie Wakefield says.
The goal of the transition is to assist Now’s cash flow, as the move will enable Now to take a percentage of broker commission unavailable with multi-agents.
The move is also being seen by Now as making the group ready to be listed by 2004 if it chooses to go down that path.
Now also believes the move will improve client perception of the group’s professionalism and will assist in protecting the brand.
“In the consumer’s mind, a broker represents the client, not the life company’s interests,” Wakefield says.
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