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Embrace outsourcing, AAP urges boutiques

Self-licensed advisers should focus on “what they do best” and embrace outsourcing for other aspects of their business, Associated Advisory Practices (AAP) says.

The Centrepoint Alliance subsidiary – which provides services to over 200 boutique licensees – said that self-licensing is not for everyone but that the option is becoming easier with a greater range of outsourced business services in the market.

“If you do want to take control of your destiny, there has never been more help to guide and support you on this journey to professional independence,” said AAP chief executive Soula Cargakis, who will be speaking at the upcoming ifa Business Strategy Days.

“This includes the full range of services from business planning, coaching, integrated CRM and compliance systems, including full compliance templates to help get new licensees up and running.”

The main focus for self-licensed practices should be generating revenue and providing high quality advice, Ms Cargakis said, with business mentors potentially playing an important role.

A statement from AAP also listed a number of the most common reasons people are obtaining their own AFSLs.

“Many advisers are attracted to the idea of self-licensing because they are frustrated with particular aspects of their current dealer group,” it said.

“Some believe they don't provide value for money or are too bureaucratic, others don't like their choice of platforms and systems, or they find their approved product lists and advice templates too restrictive.

“Other advisers have become frustrated with poor public perceptions of their dealer group's parent institution and what their clients may perceive as a lack of professional independence.”