Dealer groups wish you were here
Offshore conferences are still in vogue for a number of the country’s biggest dealer groups, with many using them as rewards and incentives for high revenue generating advisers.
A number of groups planned offshore conferences over the last year in destinations such as Hawaii (Charter, AXA Financial Planning and Professional Investment Services (PIS)), Ireland (Hillross and AMP Financial Planning), Las Vegas (AGC Financial Services), Cambodia (Australian Finance Group) and, closer to home, New Zealand (Millenium3 and Synchron).
The Investment and Financial Services Association and the Financial Planning Association issued a joint code on alternative remuneration payments in 2004. The code restricts advisers from being paid to attend conferences based on the achievement of sales targets.
AMP Financial Planning and Hillross pay for their top performing advisers to attend an offshore conference every two years, with around 190 advisers attending this year. In order to attend offshore conferences, planners must achieve “high and consistent business results”, which includes overall revenue. In addition, AMP pays for the partners of qualifying planners to attend as well as paying for most of the food and entertainment.
The group said the cost of the conference was covered by planner revenue retained by AMP for planner services. AMP insisted qualification for attendance had “no relation to whether they sell AMP products”.
PIS holds an annual offshore conference. PIS managing director Grahame Evans said the majority of its advisers and accountants paid for their own flights, accommodation and conference registration, which included meals, however, PIS subsidised the cost by around $1,000.
The group did pay the full costs for those advisers and accountants who qualified for ‘Platinum’ status by generating more than $500,000 in revenue each year.
AXA Financial Planning and Charter generally hold an offshore conference every two years. AXA's Paul Williams said the majority of advisers paid for their own airfares and accommodation, but the group did pay for flights and accommodation for its top 25 principals to attend. Those 25 must be one of AXA’s 60 ‘certified quality of advice practices’, but the final decision is based on revenue.
Williams said qualification for free attendance had no relation to how much AXA product advisers write.
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