Putting the future together at AXAFP

When AXA put its stamp on National Mutual, it was more than just a name change.

The same rules applied to what was National Mutual Financial Planning.

The dealer group has had a complete shake-up and, while some of the changes were instigated before AXA Australia's new managing director Les Owen arrived, it is no secret that he has guided the distribution force in a direction that matches his thoughts.

The changes for the group have been far-reaching and have seen support for advisers brought back in-house. A buy-back option was launched last week and a reward scheme will be introduced in the new year.

AXA Financial Planning (AXAFP) is run from the head office in Melbourne, but national manager Robert Switkowski says support from advisers comes from state teams.

"One reason for joining AXAFP is that we are the most efficiently resourced dealer group in every state (in Australia)," he says.

A key to this coverage is the dealership practice managers, an innovation that came into effect last April as part of the in-sourcing of support services.

These managers have been recruited more for their business skills than their financial planning ability. Switkowski says they are there to help the adviser run their business efficiently and profitably. All AXAFP advisers are non-salaried.

"All the dealership practice managers have come from a business management background and the aim is to get the adviser to see that they are a small business manager as well as a financial planner," he says.

"Their role is to get the business to become an efficient operation."

Also included in the practice development is a mentoring program run in conjunction with authorised advisers, to teach candidates financial planning.

The state support operations include training as well as technical and para-planning back-up.

Training is on-going and AXAFP runs professional development programs throughout the year. The education entry level requires an adviser to achieve DFP 1, 2 and 5. A graduate can join at DFP 1 stage, but AXAFP expects them to pass the other two levels as part of their dealer education program.

There are three national professional development days and state-based workshops to enhance an adviser's knowledge.

Switkowski says with 40 fund managers on the approved list, AXAFP does take advantage of fund manager's development days that run throughout the country during the course of a year.

Compliance is also run on a state-based level, with Melbourne head office setting the policy. Advisers are checked annually, but if a problem arises, checking is undertaken more frequently. AXAFP works on a rating system where an adviser with no problems gets the highest rating and undergoes only has the annual compliance check.

The state-based support program is designed to be a drawcard for advisers looking for a dealer group.

"Advisers look at two areas when considering a dealer group - terms and service," Switkowski says.

"We have developed a dedicated team of specialists to support the adviser and helping them make their business efficient. We have also made significant steps forward in how the adviser is remunerated."

AXA Australia national manager dealerships Mark Birrell says remuneration is based on gross revenue split out of fees charged to the client. The fee structure is also weighted towards selling AXA products, although advisers have access to more than 400 products from 40 fund managers.

In January next year, AXA will introduce a wealth-creation scheme for advisers which Birrell says will allow them to share in the growth of the dealer group.

"We have developed a way that will be a partnership, but some details of the scheme have not been finalised yet," he says.

One area that is still being worked on is the technology side of the wealth-creation scheme. AXAFP advisers have access to two operating systems - Visiplan and Boss software. Birrell says the new scheme is part of the restructuring of support for advisers and the wealth-creation scheme has to be integrated into the software programs.

Switkowski says the changes are part of the push to build a large network of individual dealer groups.

"We are still looking to add dealer groups to the AXAFP network and we believe we have an outstanding offer to make to advisers," he says.

It is not a number-adding exercise, however Switkowski says the recruitment program is targeted at advisers who want to build a position within the dealer group.

"There are advisers who have an ongoing professional viability to achieve success," he says. "But, we have an objective to bring in new blood that can be trained to a high standard."

AXAFP is no different to other groups that have well-established advisers who are now looking to retire, yet do not have successors in place.

"We have a challenge in finding advisers for succession planning," Switkowski says.

"Many practices are seeking to recruit new, young advisers to grow the business and become a successor to the principal."

Switkowski sees it as an opportunity and a challenge for a young adviser.

"This provides a career opportunity for people who will become a manager one day."

If an adviser is unable to find a successor, or sell the business through the dealer group after six months, AXAFP has introduced a buy-back scheme.

"We will stand in the marketplace as a buyer and we will then broker new people into acquiring the practice," Birrell says.

"It is a succession-planning tool and we can provide finance through a major bank to help the prospective buyer."

Growth for AXAFP will be a two-pronged campaign, says Switkowski. Apart from adding new advisers, the main thrust will be lifting adviser's productivity.

"This can add significantly to our growth and we can provide the support to achieve this," he says.

And there is still some leverage to be had from the dealer group's parent's name-change to AXA, Birrell says.

"There is a lot of strength in the brand and we haven't leveraged off the global aspect yet," he says.

Vital statistics

AXA Financial Planning

Advisers: 630

Funds under administration: $4.5 billion

Ownership: AXA Australia

Founded: 1993

Key figures: National manager, Robert Switkowski; National manager dealerships, Mark Birrell

Position in 1999 Money Management Top 100:4

Master trust: Summit

Research: Internal and van Eyk