Risk dealer group model challenged
The traditional model of a risk-focused dealer group is under stress and in some cases unsustainable in the current regulatory environment, according to Wayne Handley, head of soon-to-be launched financial advice group Bombora Advice.
Handley, who was previously general manager of MLC-owned advice group Apogee, said a new wave of thinking was required to address the service and operation requirements of the adviser in the post-Future of Financial Advice (FOFA) era.
The licensee should merely be an 'extension’ of the advice business, rather than the 'top down’ model seen today, he said, adding the conventional model of a risk-focussed dealer group was measured by funds under management and adviser numbers.
“Before returning to the market after leaving MLC, I did some extensive research and took an objective view of what the advice world was going to look like post FOFA,” Handley said.
“It was clear that risk advisers were seeking a more innovative offering, boutique feel, professional and independent of manufacturers, yet also enjoying a close working relationship with institutions.”
Bombora Advice, which will launch in the third quarter of this year, has been established in response to what Handley believes is growing demand from risk advisers for “an institutionally-independent licensee”.
He said Bombora would not recruit advisers for “numbers’ sake”, and that growth would be managed.
“It is no secret that financial services is undergoing immense and unprecedented change, and for advisers to secure their industry’s future requires a partner that meets far more than just their day-to-day operational and compliance needs.”
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