Life evolves into dealer group at Merc
Mercantile Mutual has rebranded its life insurance broking arm into a dealer group, AustAdvis-ers, in a bid to attract planners seeking a solution to licensing changes slated under the draft of the Financial Services Reform Bill (FSRB).
Mercantile Mutual has rebranded its life insurance broking arm into a dealer group, AustAdvis-ers, in a bid to attract planners seeking a solution to licensing changes slated under the draft of the Financial Services Reform Bill (FSRB).
If the Bill is passed, multi-agents will be forced to either seek a license or become an authorised representative of a licensee.
Chief general manager of retail distribution, Les Clayton, says the group will target “the general practitioner” style of planner.
"We are not asking planners to join in a hurry, but rather check to see if they want a full licence under their own shingle or if they wish to use our licensing services. The main thing at the mo-ment is to get planners working through the issues," Clayton says.
AustAdvisers currently has 40 advisers licensed. Clayton says the response to the new group has been positive, with about 80 practices nationally in discussions with the new group for licensing requirements.
"Operators closer to Mercantile Mutual have expressed a desire to become fully licensed and we are working on those strong existing relationships. However this will not be a tied agency type of arrangement," Clayton says.
Mercantile Mutual managing director Rod Atfield has made the arm’s length approach a staple of Merc’s distribution arms.
“We will continue to allow our advisers to choose their products,” he says. “Some groups are almost trying to push their advisers into tied distribution. We’ve always believed in the inde-pendent adviser market.”
"Although it’s a commonly held belief that you must control your distribution to be effective, we believe we can capture retail margins in our master trusts and wraps.”
At the same time Mercantile Mutual has added a back office and administration arm to its exist-ing line of businesses.
The group, AustServices, has already been made available to independent planners and multi-agents and will supply compliance, software, research and reporting facilities to planners.
Clayton says AustServices has been set up to tackle any problems involved in making a licensing decision under the FSRB and to provide back office and administration support for the long term future.
AUTHOR
Jason Spits
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