New client book website launched
A website has been launched for financial planners, accountants, brokers, and other financial professionals looking to sell their client books.
Former Herzberg Group finance manager, and National Australia Bank (NAB) employee, Emanuel Millen launched the website, www.buymyclients.com.au with a colleague from the IT industry and one from the financial planning industry with the aim of creating something like SEEK for people buying and selling financial client lists.
“The average age of advisers is around 55 to 60 and many are looking to exit the industry so the buying and selling of client books is likely to increase significantly over the next few years,” Millen said.
He added client lists were typically bought and sold through brokers, who he said may charge commissions of up to either per cent.
“Since brokers are essentially market makers in client books, the seller does not know if they are getting the maximum value out of their book,” he said.
“The buyer doesn’t know where they are in the pecking order when a broker contacts them to offer them a book. Is it a good deal or has it already rejected by 10 other people?” he asked, adding those in large firms making recurring buys would be higher in the pecking order.
The website was aimed at both direct buyers and sellers and brokers who wanted exposure. It includes search tools so buyers can find the types of client books they wanted, an alert system to notify them of matches, and secure messages to maintain sellers’ privacy until non-disclosure agreements were signed.
AUTHOR
Malavika Santhebennur
Recommended for you
Far too few wealth managers are capitalising on the opportunity presented by disruptive technology to deliver personalised investment solutions to the mass affluent demographic, according to PwC.
With over half of advisers using managed accounts, HUB24’s head of managed portfolios has unpacked the benefits driving their usage and how they can be leveraged by advice practices.
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.
ASX-listed platforms HUB24, Netwealth, and Praemium have used their AGMs to detail how they are using artificial intelligence to improve their processes and the innovative opportunities it presents.
