The InvestorDaily Dealer Group Sentiment Report 2014 – conducted off the back of 744 survey responses – found that advisers licensed by “non-aligned”, “independently-owned” or “independent” licensees were “generally more satisfied” with a rating score of 4.18 out of 5.00, whereas “institutionally-owned/aligned” respondents had an overall satisfaction rating of 4.13.
Of the 18.7 per cent of respondents who indicated they were “dissatisfied” with their current dealer group, 80 per cent described themselves as licensed by an “institutionally-owned”, “vertically-integrated” or “institutionally-aligned” group.
The self-licensed and boutique sector of the industry had the lowest level of dissatisfied advisers, with 80 per cent of “advisers who have their own AFSL” unlikely to review that arrangement.
The report also indicates a growing number of advisers looking to switch licensees, with 26 per cent indicating an intention to review their current arrangements within the next 12 months.
Of those respondents planning a licence switch, 53.6 per cent indicated they were were likely to choose a “non-aligned/independently-owned” licensee, while 46.4 per cent of prospective switchers indicated they are likely to choose an “institutionally-owned/aligned” group.
“Low licensing fees/costs”, “reputation/compliance record’ and “good culture/environment” were identified as the most important factors that would lead to an adviser switching, followed by “approved product list/model portfolio options” and “compliance/legal support”.
For a copy of the full report, including which licensees are likely to be winners and losers of market movements please visit: http://store.sterlingpublishing.com.au/investor-daily-dealer-group-sentiment-report-p-346.html
So 53.6% of 26% (i.e. 13.94%) of the surveyed advisers are “planning” to switch to a non-aligned dealer group.
This suggests that 86% are happy with aligned dealer groups – just not necessarily the one they are currently with. The headline is therefore incorrect.
I’d love to see the story in 12 months time as to how many of those who are “planning” to switch dealer groups actually do so.
It isn’t surprising considering that for the licence fees that they pay, they get very little in return and in times of need and distress very little or no support. Instos are happy to have you when you bring in the money but drop you like a hot potato when you become a “problem” that requires management. Licensees should be about assisting Advisers building their business and in time the reputation of the insto but this rarely occurs.