Planners look to PAYG dealer group service model
Ownership of the client combined with dissatisfaction with costs have emerged as the key reasons why financial planners want to change their dealer group arrangements, according to a survey of more than 180 planners conducted by Money Management.
With around 54 per cent of respondents indicating they do not believe they receive value for money from their current dealer group arrangements, the strongly preferred alternative has emerged as self-licensing combined with arrangements under which they purchase dealer group services only as required.
Of those who indicated their dissatisfaction with current dealer group arrangements, 58 per cent said they would pursue a self-licensing model, with 30 per cent of those indicating that their preference would then be to purchase support services from either a dealer group or an aggregator of such services.
A number of respondents stated that their dealer groups were already allowing them a relationship under which they only paid for the services they used.
Interestingly, around 20 per cent of respondents suggested that industry groups such as the Financial Planning Association (FPA) or the Association of Financial Advisers (AFA) could act as the providers of the dealer group services required by their members.
A number of respondents noted that dealer groups were too compliance-focused at the expense of other services they might deliver to planners.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
