Advisers are realising the “true value of independence” as more are moving away from the institutions to acquire their own AFSL, says Associated Advisory Practices (AAP).
AAP chief executive Soula Cargakis said more advisers are moving to become independently licensed as they are realising the value of being able to run their own practice.
“With so many negatives at the moment around institutionally-aligned advice, advisers are questioning the best financial planning business model going forward,” Ms Cargakis said.
“There is increased interest in independence as advisers realise they don’t need the support of a big institution to cope with the increased regulation and compliance around the FOFA reforms.
“They realise the true value of independence in terms of client perceptions, and their own control and flexibility in running their practice and business strategy,” she said.
Ms Cargakis also said a growing number of financial advisers are joining AAP - which is a subsidiary of the Centrepoint Alliance - with five new boutique licensees joining in August alone.
“As a boutique licensee, it can be lonely out there so this gives them a home and an opportunity to network with like-minded people,” Ms Cargakis said.
“While each run very individual practices under their own banners, what they all have in common is that they want to be the decision-maker in their business, not to be told what to do and which products to recommend by an institution,” she said
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