Dealer group launches low cost model
Sydney-based financial planning group Morrison Carr will embark on an ambitious recruitment program by offering a flat dealer fee to advisers of $1,000 per month.
The fee arrangement will result in all fees and commissions rebated back to the adviser while the dealer will offer licensing, compliance and training only under the low cost, low touch model.
Morrison Carr managing director Dennis Cardakaris says the service is being pitched at advisers who feel they are paying too much for dealer services or don’t need the entire dealer service offering.
Advisers signing up for the service will work under the Morrison Carr banner but Cardakaris says the group will recognise the independence of the planners and will allow them to operate under their own name as well.
The model will be best suited to those advisers generating $100,000 or more in revenue each year, as Cardakaris says the annual fee will be much lower than the current industry model of around 20 per cent.
“We are targeting this at advisers who can afford a one-off fee of $12,000 per year, and are looking for those advisers who are unhappy with what they are receiving, are keen to run their own business but still need a dealer group for some services.”
Education services will be provided online viaIntegratec, which Cardakaris says will also keep the dealer fees low.
Morrison Carr has six planners working in-house, with the group aiming to recruit about 50 planners by the end of this year.
“The driver behind this push is to grow the business using quality self-running planning practices but also to service a niche market which no-one else is covering at present. We have been testing this model for six months now, so it is time to roll it out,” Cardakaris says.
AUTHOR
Jason Spits
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
