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
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
