Following last month’s news that total adviser numbers in Australia have dropped below 19,000, local consultancy My Dealer Services’ (MDS) survey taken by local advisers found that some are using the exodus as an opportunity.
Respondents acknowledged that the growth in consumers seeking professional advice will accelerate as more leave the industry and 42 per cent said they would acquire books of business to facilitate growth.
The survey coincided with the announcement of MDS’ new online facility to roll out next month that will also include the capability to buy and sell business.
“Furthermore, the usual practice of engaging an agent or broker to facilitate a commercial outcome when buying or selling an advice business or book of clients is no longer appropriate,” MDS director Alex Euvrard said.
“Unfortunately, far too often, this is undertaken at the last minute and the resultant lateness of the transaction results in less than satisfactory outcomes for buyers, sellers and the acquired clients.
“In a time-poor, highly regulated and scrutinised industry, this practice is unsustainable and fraught with unnecessary risk.”
Mr Euvrard said that the current environment of advisers leaving the industry provides an “unprecedented window of opportunity” for others.
“For over a decade, MDS has been assisting advisers and dealer groups to become self-licensed and then provided the compliance, business support required to operate in the challenging financial advisory environment,” he said.
“We are confident the timing is right for the new offering and it will be well received by principals seeking to grow their practices and advisers pursuing a successful sale and industry exit.”
I’m not buying someone else’s problems.
Particularly when you can just pick up selected orphaned clients or clients moving advisers. I really don’t understand buying a book of clients at present but then my business is not selling financial planning books like the author.