Future of 'progressive' AFSLs bright

Despite regulatory upheaval in the financial services industry, Actuate Alliance services head Dan Powell said there is always a “demand for quality advice by Australians”.

“To leverage that demand, progressive licensees and their advisers are embracing two mutually inclusive components: best advice and best practice,” Mr Powell said.

“We believe there is a great future for single-office AFSLs that have a progressive approach.”

“By ‘progressive’ we mean placing clients at the forefront of their business, while developing efficient operating solutions that deliver on the service promise and embrace the post-FOFA reforms.”

Mr Powell said that planners who have an old fashioned approach, such as having a singular business focus so they can hold on to grandfathering arrangements, will start to see value diminish.

However, he said that progressive planners are creating simple client service segments which enable them to grow their client base at a lower cost while still improving their earnings before interest and tax.

“These businesses are actively reviewing their processes and outsourcing services and that will ultimately increase their client-facing time from current levels of around 30 per cent to around 70 per cent – this will be good for their clients and good for business,” Mr Powell said.

“Businesses which move with the times will also be more attractive when the time comes to sell.”