PIS retracts advice authorities
|
|
Professional Investment Services (PIS) has retracted a number of advice authorities previously held by accountants as part of an ongoing review of its adviser base.
PIS group general manager for advice, Stephen Poole, said the group had commenced a formal review of its authorised representatives in January 2009.
The group identified a number of authorised representatives, primarily accountants, who were offering financial planning advice on a part-time or infrequent basis.
“From our perspective that’s a business risk,” Poole said.
As a result, the group has asked a number of those accountants to relinquish their authorisations, and to instead refer any financial planning business to full-time advisers.
Identification of the part-time planners included those writing a low number of Statements of Advice or with low or inconsistent financial planning revenue.
The group has also increased the minimum revenue contribution all advisers must make to the group to remain eligible for authorisation.
Professional Investment Holdings managing director Grahame Evans said over the 2009 calendar year 209 advisers had left the group while 228 had joined.
“We’re continuing to grow but with people of the right quality,” Poole said.
“I’d prefer to have quality not quantity, and then work on helping those practices grow their profitability.”
Of the advisers who left the group over the past 12 months, not all were considered a loss. But reference checking by dealer groups employing the new advisers remains a problem area.
“That’s a very serious concern for us as an industry,” Poole said.
“We do make the calls. Because we want to know who [the advisers] are that we’re employing.”
Money Management sought confirmation of the current total number of PIS-authorised representatives but the figure was not available at the time of publishing.
Recommended for you
After seven years at the company, Iress’ chief technology officer for wealth management APAC, Anthony Gerrits, has departed as the firm commences a search process to fill the role.
With advice firms thinking about scaling up in 2025, research has detailed the main avenues financial advisers say they have used for successful recruitment.
The board of Insignia Financial has reached a decision regarding the possible acquisition of the firm by US private equity giant Bain Capital.
Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses.
