Major banks AMP and IOOF build Hotel California
The major banks, AMP and IOOF have been singled out as having licensee agreements which might best be avoided by accountants who have an eye to business development, exit or succession planning.
Accounting and financial planning business broker, Paul Tynan said accountants needed to be careful in selecting a licensee as they might find that their future business opportunities and retirement / exit / succession objectives being put at risk if the wrong licensee is selected.
"Some licensee agreements have very strict client ownership stipulations, especially those by licensees that operate within the big four major banks, AMP and IOOF," he said.
Tynan said his business had been approached by a number of accountants for an independent assessment of prospective offers and "many were shocked to learn of these client ownership requirements and their disturbing closeness to the 1976 Eagles song Hotel California".
"The adviser might own the revenue stream but they cannot sell their clients outside the licensee group," he said.
"For those accountants that value independence as the key platform of their client service and advice offering — great care needs to be exercised when assessing and selecting a licensee agreement," Tynan said.
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