Considerations, roadblocks and solutions

The Financial Planning Industry has gone through a huge overhaul over the last few years with estimates indicating the number of Financial Planners will drop below 16,500 this calendar year and below 10,000 within three years. For those who remain, it means the ratio of advisers to Australians will change to almost 1 to 1,500 this year providing ample opportunities to grow successful businesses. 

Following on from the royal commission, licensees are no longer able to subsidise their fees to advisers with vertically integrated investment costs. With this in mind, we now see advisers looking at ways to reduce their overheads and remove themselves from a vertical integration model, providing more freedom within their advice.

We are seeing more Financial Planners actively looking at new licensees as well, which can provide them greater freedom to make recommendations in their client’s best interest whilst reducing their overheads. 

What do you need to consider before changing licensee?

The chances are your current licensee won’t make it easy for you to change because they do not want to lose your business. 

You will be required to ensure you have all your client files up to date, they will need to be digitalised, audited and checked by your current licensee prior to leaving. Your new licensee will probably also require you to have everything digitised, allowing them to carry out their own due diligence. 

Roadblocks to changing licensee?

There’s a good chance you have all that information in paper files stored on your desk or filing cabinet or if your records are digital, you hold them across Dropbox, Google Drive, or various hard drives.

The thought of taking time away from seeing clients to scan and file documents on your licensee’s preferred platform is unappealing and may be enough for you to consider changing licensees. After all, you must continue to service clients and will want to spend your evenings and weekends with your family! 

 Can I change licensee and continue to see clients? 

As a business, you need to remain profitable and continue seeing clients throughout the year. By outsourcing the administration requirements, you will be better equipped to change licensees and continue growing your business.

Quantum can work with you and your current licensee to ensure that your files are digitalised and saved on their preferred platform ready to be audited. We can liaise with your licensee and inform you of any developments that need to be completed such as signatures from clients or missing information, allowing you to focus on continuing to service your clients throughout the transition period.  

Quantum will quote a fixed fee based on an agreed scope of work allowing you the certainty to budget.