ifa recently reported on remarks made by Forte Asset Solutions director Steve Prendeville that dealer groups must be wary of ‘Trojan horse’ risks associated with accepting new advisers.
Commenting on this, FYG Planners managing director Peter Mancell told ifa this was very much the case.
“I would say that Steve is not mistaken, I would say that selection of advisers to join a small licensee like ours is absolutely central to protecting all those that are already part of the group,” he said.
“We don’t have an institutional shareholder, we don’t have a CBA or a Westpac cheque-book to clean up after someone does the wrong thing.”
Mr Mancell said no matter how much professional indemnity or statutory liability insurance a dealer group buys, it’s important to appropriately screen the potential candidate, adding that FYG’s personal philosophy was that potential recruits must first pass the ‘dinner test’.
“If we wouldn’t invite them to have dinner at our homes with our families, we wouldn’t invite them into the group,” he said.
“After that, it’s about getting all their industry history, doing thorough reference checking, making sure we get access to really thorough records of their historical work performance.”
How much does self licensing actually cost? I hear such widely varied figures. 10 years with big dealer group, but as single person AR…I feel ‘stuck’.
Jessica self licensing is a very real option and has benefits and drawbacks. We run a smaller dealergroup with the idea being that self licensing is not the best option for everybody but in saying that it has to be a cultural fit for both. I would strongly recommend anyone considering self licensing speak to the newer players in the dealergroup space as they are definitely doing things differently.
Pass the dinner test what a load of crock
Perhaps you should consider completing reference checks, ABA checks, ask for their last three audits, complete a skills analysis of their capabilities and ask the BDMs about them before you even entertain asking them to dinner
Then and only then will you take on the right sort for your dealer group and mitigate and perceived reputational risk
there will be a mass exodus of advisers, 25% by end of 2018 and a further 10% end of 2019 and a further 15% end of 2024, leaving very few left
Yep, I’m one of them. At 56 now, this idiocy and ridiculous requirements for experience riskies from life companies and legislators will see me out by EOFY 2022. If I don’t find a buyer and I go BOLR then Robocop will then ‘look after’ my clients. That’s client best interest in action . . .NOT! – thanks life companies and legislators!
it’s a two way street. advisers are doing the same and or becoming self licensed. who cares move on.
“Who Cares?” – great comment, how thoughtful of you.
Slow news day and cheap promotion day for FYG
Slow news day?
The licensing business is competitive, like all business. Each licensee has there own objectives. If we are 5 years down the track, and have recruited no one, then may I respectfully suggest you should be happy to be self licensed and leave it at that.