Putting the accent on adviser selectivity

Like so many other independent dealer groups, Accent Investment Services evolved out of a larger Melbourne-based organisation. It obtained its own licence in 1996.

Accent chef executive officer Corinna Dieters says the group is a coming together of like-minded advisers.

Like so many other independent dealer groups, Accent Investment Services evolved out of a larger Melbourne-based organisation. It obtained its own licence in 1996.

Accent chef executive officer Corinna Dieters says the group is a coming together of like-minded advisers.

“We set up a framework for the dealer system that would suit the advisers in the group, and from that we opened for business,” she says.

According to Accent’s brochure for potential member advisers, the goals of the organisation are to deliver a quality service to the associates to improve the business in both qualitative and quantitative terms.

Dieters says the second goal is to deliver quality financial planning services to the group’s clients.

The brochure says independent planners seek to join Accent because they want greater control over the direction of their business. However, the group is not looking to build the number of advisers by taking just anybody, Dieters says.

“We are looking for advisers who can make the philosophical adjustment to our way of working,” she says. “Our criteria for advisers are education standards, professionalism and a commitment to ongoing professional development.”

Part of the commitment to training is a requirement that Accent advisers must have completed, or be finalising the DFP.

“With further changes expected to educational and regulatory requirements, we couldn’t see the point of recruiting people who had just commenced DFP,” Dieters says.

Despite its connections with the Melbourne-based accounting firm Meyrick Webster (Bob Neill is head of taxation consulting at the firm and chairman of Accent), Dieters says the group believes accounting and financial planning are two separate professions.

“We don’t believe financial planning and accounting are the same and nobody here does both,” she says. “Accent is a stand-alone business of independent directors who have financial planning backgrounds. We are not just part of a larger accounting practice.”

The group now has four offices around the Melbourne suburbs and is looking for further expansion, but at a rate that suits the organisation.

“We want people who can communicate at the same level and have a professional relationship with each other,” Dieters says.

The ‘professional relationship’ is used as a sounding board by Accent’s management team to develop services and programs for the group.

Dieters says the type of financial planners that join the group come from long-term backgrounds with a minimum of five year’s experience.

“Our average financial planning background is 10 years and with a zero complaints approach,” she says. “The adviser’s focus must be on the client and not looking for a high turnover in clients.”

After the selection process, Accent allows three months for induction into the group. Dieters says this allows both the group and the adviser to ensure there is a smooth transition for both Accent and the clients. The adviser is supported by Accent during this period.

“The three months allows us to get to know the adviser and for them to see how we do things here,” she says. “We take time to make sure all steps in the transition are covered and the adviser knows what is happening.”

All commissions are paid to the adviser and the client is ‘owned’ by that individual.

“It has always been our policy that if the adviser leaves Accent they can take the clients with them,” Dieters says.

Advisers who trade under the group’s banner pay a flat service charge that starts at $30,000 a year for a practice with a single adviser. This charge covers research, professional indemnity insurance, training, marketing support and compliance.

There are annual compliance reviews that look at issues on procedures and policy. “If an adviser is experiencing any problems, we help with their structure and format of plans to meet the regulations,” she says.

The aim is to enable the adviser to concentrate on providing financial planning advice and not become overwhelmed by peripheral issues unrelated to their core activities.

“Accent is a collection of different advisers that are looking to make an input into a dealer group, but stop short of getting their own licence,” Dieters says.

“All advisers have an input in the direction Accent takes, but they don’t have to take the responsibility of implementing the direction.”

The key to this strategy is for the adviser to develop their own business without worrying about the big picture directions. Dieters says this is why Accent pays 100 per cent of all commissions back to the adviser, to provide a continuing incentive to achieve business growth.

“It is also why we have a flat fee,” she says. “The advisers know what their costs are so they can concentrate on developing their own business.”

By encouraging the advisers to grow the businesses, Accent can then achieve the economies of scale needed to provide the various services.

These economies of scale have enabled Accent to provide other services to advisers such as its own internal risk division. The risk division has also developed its own client base as a means of making the service economically viable.

“Any service we provide to advisers has to have an external opportunity so we run the risk division as a separate business,” she says.

Accent uses mostly managed investments although it does have arrangements with stockbrokers for direct share purchases. An internal committee made up from internal personnel and advisers based in the four offices reviews the recommended list of managed investments.

“Advisers can’t operate outside the recommended list,” Dieters says, “so everybody has to have an input.”

She says the organisation wanted to avoid a list created by head-office that caused resentment among the advisers. The list is tight and features 20 key managers. If somebody wants to add a manager to the list, they need the support of their fellow advisers.

Growth for Accent is two-pronged. The existing advisers are expected to grow their amounts under administration, while the group hopes to add two more offices a year to reach a total of 10 during the next three years. The group is also ensuring younger financial planners are joining, to replace senior members retiring or leaving the profession.

While the group is still only three years old, it recently was a winner in the Australian Achievers Awards. The company won the Melbourne financial and insurance services category. It achieved a score of 99.51 per cent for customer service and relations.

The awards are designed to allow small businesses achieve recognition for customer service and voting is based on assessment from a businesses’ own customers.

Vital statistics

Advisers: 9

Funds under administration: $300 million

Ownership: Four independent directors holding 25 per cent each.

Founded: 1996

Key figures: Corinna Dieters (chief executive officer), Bob Neill (director) and Jim Haines (director).

Master trust: Navigator, ASGARD and Flexiplan

Research: FPI plus internal committee

Last conference: Hamilton Island