Over the last 10 years we have seen a worrying trend with compliance & administration costs rising significantly, while pressure continues to mount for commissions to be reduced or eliminated altogether.
ASIC continues to punish decent advisers for the dishonest practices of our banks and a few ‘bad apples’ and, on top of that, unprecedented education requirements have placed advisers under additional pressure.
Many advisers are frustrated and we believe that our industry bodies have not done enough to convey our side of the argument against the regulators and decision-makers.
Plummeting business valuations are resulting in an industry suicide rate of 3 per month.
It is pointless to get angry at those things that are beyond our control. It’s time to step away from the anxious herd before it is driven over the edge of the precipice and to use our experience and resourcefulness to create a new way of doing business.
CONSIDER HOW OTHERS DO THINGS
Picture a medical practice if you like, where there is a common reception & waiting area, & where patients can come in to see their own GP. When the ailment is beyond the knowledge of the GP then he/she will refer the patient to a particular specialist.
Well the concept is the same for those advisers/planners who join AFAN. We will all share staff, resources, & (where practical) premises.
Clients will continue to see you (their ‘GP’) initially but, when their issue is beyond your area of expertise, you & they will have direct access to a specialist within the group.
THE WAY OF THE FUTURE
Rather than personally entering into expensive, long-term leases you will have access to office facilities & simply share in the costs with your AFAN colleagues.
Many advisers have clients with elderly parents/grandparents. At some stage your clients will be required to make a decision about their elderly family members, however they alone will not normally be the sole decision-makers for their loved ones. Often they will make decisions jointly with their siblings, and this is where the real opportunity lies.
SPECIALIST SERVICES FOR BETTER VALUE
That one discussion with your clients about the Aged Care & Estate Planning needs for their parents/grandparents will lead to the opportunity to provide an entire suite of services to the whole family unit. You & the AFAN team providing a complete range of services to four generations of the one family.
You can keep your existing brand, should you wish, & simply hitch your business on to AFAN, you can enter into a succession arrangement with AFAN or you may want to acquire equity in AFAN. There are a number of options for consideration.
Apart from the obvious benefits of cost-sharing, those who do join will also share in the knowledge & expertise. Those who are offered & choose to acquire equity in AFAN will share in the profits of the group.