Planners still demand risk clients

financial-planning/

11 May 2017
| By Malavika |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 5 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS