The days of being used as an extension to the distribution arms of the major institutions are over, with advisers demanding quality before agreeing to use products, says Centrepoint Alliance.
According to Centrepoint Alliance managing director John de Zwart, as the advice industry changes, every section of the value chain is being forced to reconsider what role it plays and what value it can add.
This is particularly the case for product manufacturers and institutions, he said.
"The days of adviser practices being seen as the distribution arm of large institutions are over," Mr de Zwart said. "From here on, manufacturers will have to compete on the quality, flexibility and innovation of their products."
Mr de Zwart added that if dealer group heads want advisers to join their network, then they too will have to prove what value they can add.
"Dealer groups will have to compete on the value they add to advisers and their clients, and advisers will be measured on the quality of advice and strength of their client relationships," he said.
Outlining the role his company wants to play in the future of the financial advice industry, Mr de Zwart said Centrepoint Alliance is "in discussions with a number of large financial planning practices" not only around their joining Centrepoint's network but to also assist with their growth strategy through equity participation.
"Our organic growth strategy is to continue to grow through AAP's self-licensed model, [increase] authorised representatives through Alliance Wealth and [to] recruit and train salaried advisers," Mr de Zwart said.
"The only criterion is they must be a practice which is focused on providing quality advice to their clients.
"Our partnering strategy is focused on aligning with quality practices either seeking to grow a proven business model or to facilitate succession planning or changes in ownership, and that may mean exiting institutional investors or it may mean succession planning amongst the principals," he said.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 11:54ASIC permanently bans former AMP adviserBy Staff Reporter
- 11:01IRESS announces first half resultsBy Jessica Yun
- 11:05Banks the key to closing advice gap, Tria saysBy Larissa Waterson
- 10:44Adviser ethics certification launchedBy Staff Reporter
- 11:06Banks evade FOFA, industry funds claimBy Larissa Waterson
- 16 Aug 2017UBS appoints head of wholesale distributionBy Staff Reporter
- view all