Aligned advisers less satisfied

Authorised reps of institutionally-aligned dealer groups have lower levels of satisfaction than their non-aligned colleagues, a groundbreaking new survey has revealed.

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

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