Dealer groups keeping planners happy

The 2006 Financial Planners Report, compiled by AC Nielsen, has revealed the majority of advisers believe their dealer groups are providing them with good support and service.

The annual survey, which studies the views of over 700 financial planners, specialists and business owners, found 81 per cent of advisers were either satisfied or very satisfied with the dealer groups they were associated with.

The report also showed 77 per cent of planners now belonged to a dealer group, up from 74 per cent in 2005.

Furthermore, dissatisfaction with dealer groups is on the decline, with only 10 per cent of planners revealing they had changed dealer groups in the past 12 months. This compares to 15 per cent that had taken the same action last year.

In addition, 10 per cent of advisers admitted they were likely to switch dealer groups in the coming year, down from 14 per cent in 2005.

“Typically, financial planners who were looking to change dealer groups were seeking to obtain better practice management support, greater independence, and a better remuneration structure,” AC Nielsen director, financial services, Glenn Wealands said.

“It was also interesting to note that 15 percent of those planners with an intention to switch dealers were actually looking to establish their own licence,” he added.

Regarding investment categories most commonly included on advisers’ recommended lists, managed funds led the way, on approved lists 98 per cent of the time, closely followed by allocated pensions or annuities, which appeared on the lists 91 per cent of the time.