John Birt of Radar Results, a mergers and acquisitions consultant specialising in the financial planning sector, says an unintended consequence of the grandfathering regulations released on 28 June may be that they will not be covered by the exemption if they change licensees.
These advisers and businesses seeking new licensing arrangements will be treated as “new clients” under the current regulations, Mr Birt said in a statement.
In effect, this would force advisers to be locked into their existing licensing arrangements, which is “anti-competitive in nature and needs to be changed by the government,” the statement said.
The M&A consultant also flagged the possibility that this side-effect could also impact the value of financial planning businesses and limit the “number of potential buyers for that business”.
This take on the grandfathering regulations mirrors comments made this week by Association of Financial Advisers chief executive Brad Fox.
Speaking at an event in Sydney launching the AFA Adviser of the Year awards, Mr Fox told ifa that he had a very clear message to advisers on the issue.
“We are working very closely with Treasury and the relevant ministers at the moment on understanding the full implications of the grandfathering regs,” Mr Fox said.
“At this point my main message to the advice market would be: if you are thinking of joining a new licensee – particularly if you are an older business – then wait!
“The issue could be that if an adviser has grandfathered revenue with a licensee – if they moved to a new licensee that revenue would not go with them to the new licensing arrangements it would stay with the old licensee.
“There are a lot of potential implications for clients that have just not been sufficiently taken into account.”
Stevejj
i would love to hear your business model too. Please tell
love to hear your business model Steve jj that you attack other adivisers being concerned about theirs and their clients.
Andrew offered you a deal, you avoided that. Tell the forum what you do and why you are so successfull. If you critizise you need to be prepared to explain why your business model is so good. Majority of us do Investment, Super and Risk advice.Explain to us how you charge, why you charge so little etc…
[quote name=”Andrew”]Steve-jj, its not your posts I dont like. Everyone is entitled to their opinion. I just need to know if you are qualified to give your opinion. [/quote]
Andrew – understand your POV. You may want to take issue with school-boy like name calling from some. Just because I am prepared to challenge the negative views put forward by many (IMO in a very unprofessional manner) these one line typical, personalised & highly emotive bunch of responses, without any effort to debate or discuss the issues raised are produced.
So – I have been running my business for over 10 years, I do have a $3m+ retirement account (excluding any value in the business as I never count that as it’s value is variable). These facts I’m happy to have validated should you or any other poster feel that they are fairy stories.Lets play the ball land not the man.
Best.
Jason –
I do care about value – but life and circumstances change. Some investments increase and other decreases – just the way life is. As a FP you no doubt make a big sell based on risk and the management thereof.
If you or any other FP has all their eggs in one basket – aka a FP business then I’m sure they are well aware of the regulatory and business risks.
Accept that business models change for many reasons including regulatory. The higher the level of regulatory compliance, the harder it is for new FP to come into the business and thus less competition for you – look on the bright side, and you will find the half full glass is a little sweeter.
But one leg towards a professional body, and the sooner the better.
what a shame,
would of loved to see Stevejj Super dooper business model that he doesnt care about value and thats better than everyone elses. Andrew must of scared him away.
Couldnt agree more Andrew well said.
This guy wont accept your challenge. Hes a serial pest.
Steve-jj, its not your posts I dont like. Everyone is entitled to their opinion. I just need to know if you are qualified to give your opinion. I regard these forums as a valuable resource as to how my colleagues react to the differing topics and challenges. It provides valuable insight to how I mould my business model going forward. There are things happening that effect not only my livelihood, my staff and their families but more importantly how I interact with my clients. As FP we have very few outlets to vent our fustration and by you being purposely antagonistic towards the other members of this forum, no matter what the subject being discussed, will in the end prevent other posters from utilising this valuable resource.
Mate im not a punter, Andrew has accepted your challenge, go for it. Your the one bagging your fellow planners on this site not me.
Lets see if you accept, best of luck Stevejj
[quote name=”Andrew”]I’ll call you out Steve-jj. If you reveal your full name and occupation and it can be verified. I’ll donate $5k to a charity of the IFA’s choice. IFA have my contact details so that you feel secure that I wont welch on the bet.
I’m sure the charity of choice wont feel the amount is trivial and maybe finally you can have a positive impact on this website.
If you are not willing to take up my offer of the donation, I would expect you to refrain from posting your negative comments. Remember, if you are not part of the solution, you are part of the problem. Peace out.[/quote]
Andrew – this forum would be a much better place if ALL posters have their full details published, and validated by IFA.
I’m not sure what you are calling me out on, other than you don’t like my posts?
Jason – my offer stands.
Do you accept?
haha- there you go steve jj put your money up or go away you pest. People who have no compsssion or heart and wish missery upon their colleagues i feel treat their clients the same. Andrew has challenged you Put up or leave.
I’ll call you out Steve-jj. If you reveal your full name and occupation and it can be verified. I’ll donate $5k to a charity of the IFA’s choice. IFA have my contact details so that you feel secure that I wont welch on the bet.
I’m sure the charity of choice wont feel the amount is trivial and maybe finally you can have a positive impact on this website.
If you are not willing to take up my offer of the donation, I would expect you to refrain from posting your negative comments. Remember, if you are not part of the solution, you are part of the problem. Peace out.
[quote name=”Lets Get Real”]Being a tad more professional by promoting gambling on a FP website?[/quote]
A charity donation – just a little bit of fun. It was a trivial amount, nothing too serious for successful FPs.
But one should be careful about calling people out if one is not prepared to be taken on.
Being a tad more professional by promoting gambling on a FP website?
Jay – just the whinging planners who want to complain all day, rather than living with change and just getting on with it.
A poster took issue with my assertions, so for fun I thought a charity could do with an extra $5k.
Alas, one is not to be taken up.
It appears that unless one agrees with all the complaining posts then one is not welcome. Shame, so much could be learnt, but some will always put their head in the sand.
The general standard of personal attacks by the likes of you, Dave et al are somewhat disappointing but whatever rocks one boat I guess.
If you see every view that challenges the complaining as causing trouble then that is your valid view of the world.
Maybe that is why FP are held in such low esteem by so many. Maybe we could be a tad more professional and raise the image. Many readers will not be FP and this sort of personal attack does the industry no good at all.
jay
he is not a planner-just a pesty troll with nothing better to do but stir his pot.
Stevejj
you are a serial pest on the blog sites, you bag planners, yet on a good day you say you are a planner, on a bad day you say your not.
You put no value on your business or compare it to a taxi plate which i actually own and has gone up to over 500k, yet my FP business who knows.What makes you FP business so better than everyone elses on here, if you do have one that is. i see you baiting others for bets. I reckon you are just on here to cause trouble and dont really know anything about running a business. Explain to me what makes your business better than anyone elses on here, you seem like you know it all.
[quote name=”jasonj”]steve
just tell me what value do you put on your business[/quote]
It’s worth what it is at the time of selling it – aka a home, a taxi plate or any other business. Sometimes they are worth more and sometimes less – just the way of the world.
As an experienced ‘risk adviser’ one should be 110% OK with this ??
You can take up the bet or withdraw your assertions. Either way do the right thing and show you are an honorable person.
“How about a $5k side bet, with proceeds to charity of choice if I can prove my assertions.”
steve
just tell me what value do you put on your business
[quote name=”jason”]Well congratulations Steve jj, if you have accumulated so much wealth and your FP business mean no value to you, what are you doing on here.
I put a value on every asset i work hard for.
i doubt firstly very much you are a FP from reading some of your posts and secondly you have any idea how to run a business, your a troll like others have stated. Go bag Kevin Rudds Asylum policy or make comments or Q & A where you are more welcomed and stop wishing Evil up hard working Australians[/quote]
Your intellect and professionalism stand our for all to see.
How about a $5k side bet, with proceeds to charity of choice if I can prove my assertions.
If you don’t believe me then put your $ where your mouth is, and do a charity a good turn in the process.
No wonder FP get such a bad rap.
Well congratulations Steve jj, if you have accumulated so much wealth and your FP business mean no value to you, what are you doing on here.
I put a value on every asset i work hard for.
i doubt firstly very much you are a FP from reading some of your posts and secondly you have any idea how to run a business, your a troll like others have stated. Go bag Kevin Rudds Asylum policy or make comments or Q & A where you are more welcomed and stop wishing Evil up hard working Australians
[quote name=”patrick”]Unbeleavable that this is even being discussed! so will the Dealer Group pay for the loans also on those books of clients that have been purchased ? what crap, time some good Legal Advise was bought in here I feel![/quote]
Patrick – I understand your fear based on buying a book. But it is no different to any other business, e.g. a taxi plate. One hope to make a living, and hopefully the capital value will increase.
However if legislation makes the value less, then so be it. A risk that as a qualified FP you must have been fully aware of?
It never ceases to amaze me that FP borrow money to buy a business and then complain so much when the rules change – it happens all the time to many businesses.
Go buy a corner chop and then WW of Coles opens up around the corner – hard, but that’s the way life is.
[quote name=”Jason”]Stevejj-
you must be that Collingwood supporter ive been hearing about that has never put any blood sweat and tears into anything before.
ill pass on your comments thanks, go and have your smoko break, 1 hour lunch, smoko break and leave the hard work to the self employed.You have no idea.[/quote]
Jason – cheap shots from an educated professional – amazing.
10 years in business – I guess I must be doing something right ? Oh, BYW manged to accumulate a >$3M SMSF in this time, just for fun.
Unbeleavable that this is even being discussed! so will the Dealer Group pay for the loans also on those books of clients that have been purchased ? what crap, time some good Legal Advise was bought in here I feel!
Stevejj-
you must be that Collingwood supporter ive been hearing about that has never put any blood sweat and tears into anything before.
ill pass on your comments thanks, go and have your smoko break, 1 hour lunch, smoko break and leave the hard work to the self employed.You have no idea.
[quote name=”Jason”]Well thats devalued my business down to Nil. i have one other practice that could possibly purchase my business and they are not in a position now. So i guess ive have worked all my life for nothing. Thanks a bundle Shorten, Evil Evil Man[/quote]
Jason, one assume you have had a very good living all your life, just because the icing on the cake is a tad thinner,so what? Happens to many in bushiness, the world changes.
Ever thought about all those floppy disk manufacturers, they changed or went bust.
Don’t be such a drama queen, still a good living to be had.
You understand the risk management side, never have all your 100% of your retirement funds in a business that is prone, and has been for many years, to legislation and changing of the rules.
The old door knocking insurance sales dudes (industrial policy – ring a bell) probably felt the same when their world changed.
Well thats devalued my business down to Nil. i have one other practice that could possibly purchase my business and they are not in a position now. So i guess ive have worked all my life for nothing. Thanks a bundle Shorten, Evil Evil Man
its what the socialist communism party wants. Destroy us for their gain.
Policy on the Run or devilish intent is the Question.
the sooner people wake up and actually see the damage this incompetent cancer of a government has caused and vote otherwise the sooner we can rest in peace as an industry and function again.
I know…..lets quickly change the law, we’ll do a quick press release, tell everyone how clever we are and moving the country forward and protecting battlers.
The legislation will come a long time later and look nothing like our announcement but everyone will have forgotten by then.
What is that you say? what about carefully considered policy, taking into all ramifications, consulting with all stakeholders to make sure we provide certainty for business, protection for consumers and act in the best interests for ALL.
NAH!!!
We’ve been running the country this way since 2007 and look where the country is!! No need to think carefully about anything.
Do have the address of that brothel for me and my union mates? Oh and I forgot to tell you the XXX union has has changed their print supplier to your wife’s printing company.
Onya Maaaatttee!
Its what the drafter of the legislation wanted. This clause forces older accounts to be reviewed and moved from older policies/accounts to new accounts and a fee for service proposition much sooner. The proponent of the legislation doesn’t care about FP’s and their business, your staff, your viability or the fact that your business is your superannuation fund for retirement. What it does do is entrench accounts with institutionally owned AR’s.
Gerry
Its Friday don’t worry-a bottle of wine is great therapy. Seriously though-convert to fee for service and go to any dealer group. Don’t let the B……s wear you down. Control your own destiny.
Its bad news Friday again…what else will hit my screen by close of business apart from my calculator, hole punch, stapler and anything else within reach.