Value for money key to success for small dealer groups
Financial planning dealer groups will need to deliver greater value for money in their product and service offerings in order to stay competitive in a new legislative environment.
That's the assessment of Sentry Group chairman and chief executive officer Murray Hills, who believes that the new Future of Financial Advice environment and increasing demand for dealer groups to support the independent business models of its financial adviser network will be the key to success in 2012.
A strong business model going forward will not be based on financial adviser numbers, but more importantly, the quality of the advice provided, Hills added.
"There is a lot of discounting and a price war going on, particularly with the smaller dealer groups, which will only cause serious heartache for advisers in the future," Hills said.
In an attempt to assist financial advisers effectively grow and expand their businesses, Sentry's new adviser solutions and licensee services package offers licensees managed discretionary account and unified managed account services, an independent approved product listing, compliance guidance, audit and policy procedures, a FOFA and fee-for-service transition program, and online 24/7 expert advice, sales, marketing and technical support.
In addition, Sentry will provide financial advisers with continuous personal and professional development programs, a technical, financial planning and strategic review service, professional indemnity insurance, and a complaints management service.
Financial dvisers need to understand that it is a highly competitive financial planning market and that it is in their best interest to have strong management and technical support to stay profitable amidst widespread industry change, Hill said.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
