More advisers asked to switch dealer groups

More than half of advisers in the industry have been approached by one or more licensee asking them to switch, according to a CoreData survey. 

However, the CoreData Licensee Research Report - which was based on a survey of 876 advisers, practice principals and paraplanners - found switching intentions remained relatively stable. 

Less than 15 per cent of advisers indicated they would switch licensees in the next 12 months, according to the survey, which was in line with last year's results. 

Remuneration is the factor most likely to attract advisers to join a licensee, followed by product independence and compliance support. 

The lead-up to the Future of Financial Advice reforms had a significant impact on how advisers viewed their relationship with their dealer group. 

While remuneration might be what attracts advisers, other factors have a much bigger impact on their satisfaction. 

"In the past, importance rankings for advisers have tended to centre around the price/service trade off - with the utility which can be derived from their licensee relationship coming down to how much advisers are able to earn from a service as compared to the amount of work they had to do to achieve the outcome," said Salvador Saiz, head of advice, wealth and super at CoreData. 

"That's now changed markedly and instead what we are increasingly seeing is advisers being attracted by businesses which are delivering great compliance support and have the systems and training programs to take the stress from advisers." 

The report found compliance support was the most utilised licensee support service by respondents across the industry, with nine in 10 advisers using it in the past 12 months, which represents a marked increase over the last three years.