AI&FP strives to put personal service first

Brisbane-based dealer group Australian Investment & Financial Planners (AI&FP) was established by managing director Michael Summers in 1995 as a co-operative advice business to provide support for planners seeking to remain wholly independent of institutions.

Summers says despite the enormous sway the major banking and insurance groups have within the market there is strong demand from both advisers and consumers for independence.

“A significant portion of both the investing public and advisers are looking for something that isn’t influenced by major institutional policy.

“[With AI&FP], in the case of investors they can be satisfied that they are getting access to all the investment options as opposed to those that are favoured by the sponsoring institution, while advisers can feel they have access to the complete spectrum of investments in order to offer a fully professional service to their clients,” Summers says.

AI&FP, which has a total of 52 advisers operating across New South Wales, Victoria, Queensland and Western Australia, recently struck a deal with online platform provider Netwealth to badge the vehicle as Platform X.

“We surveyed the investment platform space over 12 months and reached an agreement with Netwealth and have put to market a [badged] platform called Platform X, which is completely free of commissions or soft dollar,” Summers says.

Meanwhile, planners joining AI&FP retain full ownership of their businesses, with Summers saying the relationships are very much focused on partnerships.

“AI&FP has been established for the long haul, providing legal, administration and technology on a co-operative basis.

“It provides the framework needed for the development of their businesses and the continuing profitable operation of them well into the future.”

In terms of adviser remuneration, the dealer firm remains flexible as long as the client is aware of the structure the adviser is operating under.

“We allow complete flexibility of charging structures to suit client preferences, providing that whatever the structure is it is fully disclosed.”

Summers also says he is not actively seeking to grow the business as AI&FP has a close culture and expansion beyond a point would reduce the service advisers receive.

“We don’t actively recruit but rather we respond to referral and inquiry, which generally comes from existing advisers or business development managers who are aware of existing quality planners looking for a new home.

“We have no intention of becoming so large that we lose the capacity to support advisers in a personal way, and with that we believe more than 100 advisers would prevent us keeping the same culture,” Summer says.

Before a planner can join the co-operative, AI&FP undertakes due diligence on evaluating their background.

Summers says it usually looks for a business with more than one financial planner, as this signifies a potential for future growth.

“I believe the days of the single planner business are numbered,” he says.

Planners in the business are required to pass PS 146 before joining the dealer group, and also have to produce a business plan for future development of the business before being accepted.

“We look for people who are technically and academically sound,” Summers says.

The co-operative expects all planners to be moving towards achieving the Diploma of Financial Planning 8 and Certified Financial Planner designations.