In an address to the REAL Future of Advice Conference in Vietnam this week, Tony Zulli, Australian Advisory managing director of advice and funds, looked at challenges facing the sector.
He said dealer groups should re-examine their models as the advice landscape is shifting post-royal commission.
“Look, the traditional role of the licensee has to change. We’re in a completely new environment,” Mr Zulli said.
“And basically, we have to review the model. There’ll be new models coming out.
“What that model’s likely to look like, I think it’s going to vary quite widely.”
Looking at advisers moving from the major institutions and applying for their own licenses, Mr Zulli said the option is not a clear-cut solution.
“I believe there’s probably three or four hundred that I’ve heard that are applying for a license,” he noted.
“But it’s a long ball game. It’s nine to 12 months to get your license. And there are no guarantees you will get your licenses.
“And the bigger question is going to be, you as an adviser, where is your real skill set? Is it actually running a license?
“Or actually building your clients’ wealth and being your clients’ advocate. That’s the question.”
The main challenge, according to Mr Zulli, is finding a balance between compliance, support and commercial reality.
“That’s the fine balance that is always difficult to find. Particularly that you’ve got regulators that are asking a hell of a lot more questions, that’s also being reflected in our dealings with our product providers,” Mr Zulli said.
“The amount of due diligence that we’re actually now receiving back from product providers, as we transition advisers to our licenses has increased, increased exponentially. There’s a lot more paperwork, there’s a lot more proof that you actually have to provide before they’ll even give you an ability to use their products.”
He commented his company is thinking of where its own advice business will move, although changes to its business mode are yet to be confirmed.
The Sydney-based advisory and investment management group has three licenses, each catering to a different service offered by its authorised representatives.
Its main advice licence for advisers is Consilium Advice, while it has a solution for accountants, recommended for SMSF strategies (SMSF Super Advisory) as well as a license for private wealth advisers with wholesale clients, Premium Advisory.
“I’ve got some views about where I believe we should take our advice business. But there are further discussions where we need to be having before we make any significant changes to our business model,” Mr Zulli said.
“Anyway, this is where we are is because we’re a relatively young advice business. We can actually address what we look like based on what’s actually happening in more recent times.”
The conference is hosted by Australian Advisory, industry body United Financial Advisers Association (UFAA) and broker firm Vision Aggregation, with over 350 attendees, including advisers, mortgage brokers and accountants.
[quote=ANON]This is the dodgiest conference ever!?!?![/quote][quote=ANON]This is the dodgiest conference ever!?!?![/quote]
I’ve never heard of this crowd before – they list NZ Singapore and Vietnam as operations?
Anonymous said;
[i]Mr. Rulli, if your LinkedIn details are correct then;
– you have no FP qualifications, and
– you have no advice experience.
You are not licensed (on the FAR) or registered with the TPB.
In this case why should we listen to anything you have to say about the operation of a AFSL
Your commentary seems quite remarkable in all the circumstances. [/i][i][/i]
Under that criteria he sounds like 90% of dealer group heads, CEO’s of AMP, banks Wealth Divisions, FASEA committee members and every other cockroach in this industry that knows best about how to deliver advice in Australia…. a perfect candidate.
trouble with financial planning is that anyone and everyone without any qualifications comments on it.
the post below is correct. you can only comment on the profession if you:
a. are on the FAR and or;
b. hold a grad dip fp or m.fin plan and or;
c. other relevant degrees and or qualifications and ;
d. qualified by relevant work experience of not less than 7 years
can all those who wish to make a comment that do not fit in the above categories please get lost. vamoose turds. thank you
The licensee model is based on a tied insurance agent relic from the 1980’s and earlier. The only reason ASIC haven’t pushed for its abandonment is that they have found it much easier to only need to knock on a few large deep pocketed licensees doors each year, bash them around the head a bit, serve them a big fine and some remediation requirements and then get back to lunch. I don’t know if ASIC have quite cottoned on to the fact these big licensees are disbanding and the smaller ones don’t have the funds or the resources to play this same game.
Mr. Rulli, if your LinkedIn details are correct then;
– you have no FP qualifications, and
– you have no advice experience.
You are not licensed (on the FAR) or registered with the TPB.
In this case why should we listen to anything you have to say about the operation of a AFSL
Your commentary seems quite remarkable in all the circumstances.
Well Tony, my dealer group like many others is well ahead of the pack and in line with all recommendations of the RC and then some. I think you just woke up to the fact that change is imminent and should be well advanced within your group. Got your name on paper at least.
MG your comment [i]”A single self licensed adviser who operates their own AFSL is worse than the conflicted rem that was highlighted in the RC. An adviser cannot monitor themselves “[/i][i][/i] That is a scary comment as what you’re saying is that you feel as an adviser you can’t be trusted to follow the legislation. Can I suggest people like you leave the industry as soon as possible. It’s like saying a Solicitor or a GP can’t be trusted to be regulated himself and keep his knowledge up to date he needs to licensed via the Thalidomide Pharmaceutical Company. What other models of Professionalism work on the basis of companies “Thalidomide” like drug companies authorising people to act on their behalf. Accountants…NO….Doctors…NO….Solictors…NO.. I personally believe those advisers now licensed via some of those firms are the scum of the earth.
Anonymous, nothing was mentioned about overseas conferences. The comment was pretty clear and I can also put my name to it.
Tom , how is an overseas conference in todays world beyond belief ? . Last one I went on I had to pay myself and put any extras on the gift register ( not that was one ) . Go see the leading real estate agents and mortgage brokers conferences , they get paid commissions , Want to stop that ?. The world is changing , people like and pay for overseas conferences , exchange ideas ,find some solitude in a difficult environment , and companies that are leading the world ie Google etc have now employed people WITHOUT DEGREES as they found a bit a paper was useless !!!!
Seems like dealer group heads spend most of their time these days telling scare stories about how hard it is to get and run your own licence. It’s not actually that hard folks!
The most difficult thing about running an AFSL is being responsible for the behaviour of self employed individuals and small businesses operating under your licence. (Authorised Reps and Corporate Authorised Reps). When the people operating under your licence are your employees, its much easier to manage and much lower risk. When they are yourself, even easier!
The whole “Authorised Representatives” concept in AFSL licensing is flawed. It needs to be discontinued.
Message to all dealer groups, perhaps stop having conferences in overseas locations/luxurious domestic resorts first, this reduces costs to advice businesses which should then keep costs lower for clients. The days of the annual conference for the dealer groups should be over. Never got anything out of them and never will.
A single self licensed adviser who operates their own AFSL is worse than the conflicted rem that was highlighted in the RC. An adviser cannot monitor themselves
Interesting people involved in this organisation and that association. How they are all still able to operate in today’s world is beyond simple people like myself
This is the dodgiest conference ever!?!?!