Profile – Peter’s drive for a top performance

Name :

<B>Peter Graham Smith

Job Title:

Certified Financial Planner.

Director of Peter G Smith Financial Services & shareholder of Australian Financial Services.

Director of Kurvink & Coombs Accountants and Planners.

Dealer Group:

Australian Financial Services.

Age:

36

Qualifications:

Certified Financial Planner

Diploma of Financial Planning

Number of Clients:

A selection of referring Accountants and a range of Financial Planning clients categorised into several classes for effective delivery of high quality service appropriate to the individual situation.

Remuneration:

Financial planning and accounting gross revenue $1.7 million.

How long in profession?:

Since 1986

What attracted you to financial planning?:

By joining the financial planning industry at 23, I thought it could provide me with an excellent career path and enormous opportunities in a growth industry which had an ageing and diminishing adviser force. The constant challenge, change and opportunities have always added a lot of excitement to my career.

Background:

I joined AMP at Toowoomba in 1986. After two years with AMP and being issued with a proper authority, I left to become a multi-agent and proper authority holder and worked in a small accountancy office in Brisbane. I have completed a Diploma in Financial Planning and was issued with Certified Financial Planner status in 1997. I was one of the first to join Australian Financial Services as both a shareholder, authorised representative and life broker representative. In 1998, I bought a 50 per cent share in a medium size accounting practice.

Who is your target market and how do you reach them?

Our target market is wealthy individuals; successful small companies; and the retirement market. We reach our target market from referrals and the servicing of our client base. A panel of accounting firms refer many prospects that fit our desired client profile. Other successful financial intermediaries also use our services to give advice to their clients.

Do you have any superannuation clients?

About 45 per cent of our clients.

List the top five issues currently facing financial planners.

Internet and rapid technology advancement

Declining brokerage

Increasing compliance issues

Increasing and constant educational requirements

Time allocation for the above four issues and finding time to run a successful financial planning practice and maintain a quality family life.

Do you think these issues will remain paramount in 10 years time?

As globalisation and technology keep advancing the above issues will be even more paramount in 10 years.

What motivates you as a financial planner?

To be able to help clients attain their objectives and goals as well as achieving personal goals and success.

What has been your best and worst move for a client?

The best move we made for a client was to invest $150,000 in a 15 year fixed term annuity in 1996 and then cashed it out 6 months later at a total return of capital of $195,119.22. The client risk profile was risk adverse so he was extremely happy with the result.

The worst move is not being able to convince some clients to remain fully vested in their long-term investment strategy when there are rumours of downturns and/or corrections in the market.

How long is your working week?

35 - 40 hours per week.

How much money under your direct advice?

$60 million

Best marketing tip for attracting new clients?

To focus on a particular market and become a specialist in that selected market.

Do you use any portfolio management technology? If so, which one(s) and why?

As with most dealer groups, the technology and planning software is maintained in-house. There is however, a lot of software offered by the fund managers that incorporates the ongoing taxation and legislation changes.

Any outsourcing or external services used?

I use external business and marketing consultants. The business is very focused on business planning and we contract three specialist consultants that focus on our industry. The business also participates in a group of selected financial planning firms for benchmarking. This service enables us to measure our performance, remuneration, staffing, costs, hours worked, net profit, and revenue per hour against industry best practice.

Any 'clients from hell'?

The practice has a small number of clients that fit into this category. One particular pensioner is always complaining bitterly that their portfolio has performed so well that each year their Department Social Security Pension is reducing. What bad luck?

Do you have any role models?

Our business has exploded ever since I have been involved with Malcolm Payne, a former leading entrepreneur in financial services. Malcolm has helped introduce Business Planning and direction to our business. He has opened the doors to a number of Australia's leading practitioner driven financial planning firms on which I have modelled my business.

Any extra industry involvement or activity?

I have been involved in various lobby groups in the past providing input to issues of a political nature that affect our business.

Any pet hates?

People seeking my time on issues that are not relevant to my core focus.

What other issues create success for your business?

Forming friendships and alliances with successful people from which my business and personal interest can grow. Joining as a shareholder in the dealer group, Australian Financial Services, that is practitioner and technology driven, where my business can partake in the dealer group profits.