Planners questioning dealer group value
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Current market conditions have prompted many financial advisers to question what they are paying and receiving in return from their dealer groups, according to the chief executive of boutique dealer group Premium Wealth Management, Chris Saunders.
Saunders said the questioning of the value proposition being offered by dealer groups was occurring in circumstances where advisers' fixed costs remained unchanged but where revenues were down by as much as 40 per cent.
He said it was in these circumstances that dealer groups would continue to come under competitive pressure to improve their operational efficiency.
Saunders said this would be reflected in flexible commercial remuneration structures and the simultaneous development of products, services and support demanded by financial planning practices.
He signalled that in the current environment, Premium would be looking to enter into alliances and partnerships.
AUTHOR
Mike Taylor
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