Offering best value
Offering a value proposition to advisers was the key to boosting the number of financial planners at Capstone Financial Planning.
“Our growth is occurring from a variety of places, but generally people are looking for a solid value proposition,” says Capstone managing director Grant O’Riley says.
“Other people are coming from small practices and looking for more support from a dealer group like ourselves.”
O’Riley says the type of services people are looking for include a good product range, user-friendly compliance, practice management and coaching.
“People are looking for a relationship with their dealer group and personalised service from the organisation,” he says.
Remuneration of advisers is another attraction created by dealer groups, and expanding the structure beyond just product payments creates a point of difference, O’Riley says.
“The institutions pay more if you use their product, but advisers looking at alternative dealer groups want the same remuneration structure, regardless of the product they use,” he says.
“By putting together a value proportion that includes all these points means you attract quality practitioners,” O’Riley says.
The quality of the dealer group’s staff also reflects on the attraction and retention of advisers.
“The dealer group has to offer quality processes and systems so, when I go to see a new potential adviser, they ask me what can I offer and what Capstone is about,” O’Riley explains.
“I tell them about what we can offer, but also how we can transition the business to Capstone with minimum disruption.”
The dealer group has recruited 10 advisers in the past 12 months, which is an increase of over 26 per cent.
Capstone has been recruiting for around two years and now has 48 advisers with more joining in the new financial year, according to O’Riley. It now has $1.2 billion of funds under advice.
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