Planners lack support for AFSL applications
While there is increasing interest amongst financial planners for establishing their own Australian financial services licence (AFSL), many have concerns about the lack of support and information throughout the process, according to consulting firm GreenZone Australia.
Co-founder of GreenZone Australia, Geoff Rimmer said he had seen an uptake of interest amongst planners who felt that an AFSL would render them more independent, as well as increase the opportunity for them to provide conflict-free advice. He said many, however, still held concerns about the levels of support available to them.
“There is no doubt that moving AFSLs or establishing one from scratch is a big decision,” he said.
“But they (planners) are worried about the cost of setting up and maintaining an AFSL, and they aren’t really sure about the steps that need to be taken to get there.”
Rimmer affirmed concern that the establishment of an AFSL from scratch was a large investment, but said the 200 of 400 applications for licenses taken back by the Australian Securities and Investments Commission (ASIC) last year were testament to the need for specialised support.
“That’s a lot of very expensive mistakes,” he said of the licensing ‘fail rate’.
“Holding an AFSL is an adviser’s key to future professionalism enabling the provision of truly independent advice.
“The industry must continue to move towards independence if it is to become a true profession and to ensure planners act in the best interests of their clients.”
AUTHOR
Hope William-Smith
Recommended for you
The Federal Court has made interim travel restraint orders against two Falcon Capital directors, while also freezing one director’s assets.
For the 2025 financial year, all but one listed advice licensee has reported double-digit share price growth – but which licensee has seen the best performance and what activities have they enacted during the period?
Evidentia Group has confirmed its new executive leadership structure, having been formed from the merger between Evidentia and Lonsec Investment Solutions, to shape the future of managed accounts.
CC Capital, the last remaining player in the bid to acquire Insignia Financial, is still yet to finalise its offer, the firm has informed the market.
