TAL targets risk specialists with Affinia launch
Changes to the distribution landscape and demand for products and services specifically targeted at risk specialists were the main drivers behind the launch of TAL's new dealer group Affinia, with TAL-owned Pivotal Financial Advisers being rolled into the new entity.
Affinia head Craig Parker said regulatory change and industry consolidation of advisory firms meant risk-focused advisers have been crying out for specific products and services.
He said the risk advisers he has spoken to felt as if they have been "left out in the cold" by some dealer groups because they had generally been overloaded with wealth management strategies and economic updates that are usually not applicable to their risk speciality.
"We are going to drive technical expertise, technical knowledge, and provide assistance that can help them grow their business," Parker said.
Parker said that TAL would fully back its new dealer group Affinia so that it could be more flexible and responsive to advisers' wants and needs than a traditional dealer group.
As part of its offering, Affinia will provide underwriting pre-assessment services, business planning and legal services, and marketing support for advisers, TAL stated.
Parker said the licensee would operate on a flat fee structure with commissions paid weekly. He added that advisers would have access to an open, approved product list because it was important for risk specialists to have that choice.
The dealer group officially opens its doors in January 2013, and Affinia has been approaching established practices with around two to three authorised representatives and recurring revenue of approximately $500,000 annually, according to Parker.
TAL chief executive Brett Clark said the Affinia brand would complement TAL's existing business.
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