Moving licensees an insightful process
Transitioning to a new Australian financial services licensee (AFSL) could bring disruption to financial advice businesses but it can also provide insight into businesses and opportunities to improve businesses, according to a former Guardian Advice adviser.
Sue Paterson, who owns Brisbane-based risk protection practice, BIG Group, said transitioning to a new licensee provided her with an opportunity to attain a comprehensive understanding of the corporate regulator's compliance regime.
Paterson moved under the non-institutionally owned Centrepoint Alliance banner as a corporate authorised representative after Suncorp Life closed its Guardian Advice business in November last year.
"The process of researching five different licensees proved to be a really great learning experience and greatly expanded my professional knowledge of ASIC's [Australian Securities and Investments Commission's] compliance regime," Paterson said.
"I was concerned that if I chose to licence under another vertically integrated model, I may face the same issue again should they choose to follow a similar strategy to Suncorp."
While Paterson initially contemplated joining Centrepoint Alliance as a self-licensed practice under its licensee solutions division, Associated Advisory Practices (AAP), she said her commitments led her to opt for the authorised representative route as she saw significant risk in becoming the responsible manager.
"I would advise any group looking to change licensee to take your time, do your research and make sure the licensee shares your values and outlook," she said.
BIG Group employs 13 staff, including three advisers, a practice manager, three support staff, and six general insurance staff as part of an insurance brokerage.
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