Planners still demand risk clients
Demand for risk clients had not dampened despite the new Life Insurance Framework (LIF) legislation, according to financial planning broker firm, Radar Results.
Radar’s Six Monthly Price Guide showed most of the demand was for book sizes of $150,000 to $500,000 in annual renewal commissions.
Radar Results’ principal, John Birt, said: “The age of the clients is important, and the younger the clients, the higher the price multiple”.
“Whether the premiums have been written as stepped or level doesn’t appear to make a difference,” he said.
Demand for financial planning clients 80 years and older had also increased, with client registers changing hands at prices of up to 1.8 times the recurring revenue (RR), up from 1.5 times.
The guide showed demand for these clients had increased due to a shortage of registers for sale.
“Even now, the older client bases in the marketplace are looking attractive. Clients aged in their late 70s have also seen higher demand, attracting prices between 1.8 to 2.5 times the RR”.
He added that multiples of RR of between 2.5 and three times were being paid for registers where the average age of the client was up to 64.
AUTHOR
Malavika Santhebennur
Recommended for you
The corporate regulator has cancelled the AFSL of a Perth advice firm with the firm having previously seen its licence temporarily suspended in 2020.
Having proposed changes earlier this year, ASIC has clarified how it will support licensees with additional relief under the reportable situations regime.
AMP has partnered with BlackRock and research house Lonsec to provide a model portfolio capability on its North platform that offers “portfolio customisation at scale” to advice practices of all sizes.
Money Management rounds up actions ASIC took against advice individuals in the first half for FY25 from exam falsifications to dishonest conduct.
