AXA offers advisers cash for clients
AXAhas launched a scheme to buy clients from established financial planners and pass them onto new recruits using buyer of last resort principles in a bid to attract more numbers to its dealer groups.
The steps have been taken as part of a new initiative, Project Discovery, which plans to buy clients offered for sale byCharterandAXA Financial Planningprincipals and sell them to planners wanting to start their own businesses.
AXA national manager dealer groups Andrew Waddell says the Discovery plan is being offered to 450 principals in the two AXA dealer groups, and 318 have expressed interest in taking part using the buyer of last resort principle to sell and acquire the clients.
“We have completed one transaction, which saw an existing planning business sold and repackaged to five planners who wanted to start their own business. We hope to buy enough clients to establish 150 new compliant and productive advisers,” he says.
“This will enable our existing principals to retire debt, pursue growth opportunities or retire from the industry,” he says.
Waddell says AXA hopes to complete a number of client buy-back agreements by the end of this year. AXA estimates advisers in the dealer groups have more than 500,000 clients.
The move ties in with the dealer group’s adoption of Ipac’s lifestyle planning process and at the company’s current national professional development day series, attended by 1,000 planners, about 350 committed to training courses for using the process.
Waddell says the company had hoped 250 would commit, but initial demand has exceeded expectations.
Planners agreeing to switch to the lifestyle planning process will initially undertake a two-day training course, as well as committing to additional ongoing training and coaching.
AXA is also lifting the entry requirements for planners wanting to join its branded financial planning group and Charter.
Waddell confirms new standards are being adopted to improve the quality of its financial planning capability.
“AXA aims to improve the standards of planners in its dealer groups. We want to partner with quality wealth management and financial protection adviser businesses and grow together.”
Waddell says AXA’s aim is to attract quality, compliant and productive advisers and partner for growth using its decentralised support services.
The company has based business development managers and some support services in each state, rather than offering a centralised service.
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