Letters 27/05 – Taking a professional approach
The ongoing debate over who owns the client should be put to sleep as Sue Laing rightfully points out (Money Management April 29).
As dealer principal of Ausfin Management Services, we have always declared to our representatives that they are in the business of dealing with their clients while the dealer is in the business of dealing in securities.
The clients know the adviser. It is their adviser they deal with and with whom they have the relationship. The dealer is the business vehicle through which all this takes place.
We are of the opinion that a professional approach is required of a professional firm. Therefore, up-front in our agreement with the representative, it is set out that the adviser owns the rights to the clients, the trail commissions and everything else that goes with the clients.
If the adviser and dealer part ways, why not shake hands, wish each other well and get on with life. Maybe we're a bit simplistic but we won't need to be in Court and this profession will be all the better for a sensible approach to the relationship issue.
Robert P Smith
Chief Executive Officer
Ausfin Management Services
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