Self-licensing continues to gain traction

The number of financial advice businesses opting to have their own AFSL is “accelerating”, says licensing consultancy My Dealer Services (MDS).

MDS associate director Alex Euvard said the company is receiving a “record number” of enquiries from advisers seeking to operate under their own AFSL.

“The number of advisers opting to have their own AFSL is accelerating in line with industry changes such as a resolution to FOFA,” Mr Euvard said.

“[Also] it is becoming obvious that professional practitioners are moving towards an environment that gives them charge of their destiny without collective restraints."

Mr Euvard added that he is confident the trend will continue for the remainder of 2015.

He also said he welcomed the corporate regulator’s tightening of its criteria for advisers wanting to obtain an AFSL.

“Although the licensee cannot shirk their responsibilities and obligations, MDS is able to provide outsourced cost-effective solutions to assist them to meet these obligations compliantly,” Mr Euvard said.

“In our experience, approximately 80 per cent of AFSL applicants sign up for the ongoing assistance from MDS once they receive their draft licence.

“This service includes continuing professional development for authorised representatives, monthly regulatory updates, research, software, PI, attendance at bi-annual professional development days and the list goes on. It is like being in a dealer group except with your own AFSL,” he said.

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