How does a privately owned dealer group not only survive, but thrive in the current environment? From my perspective, the success of privately owned dealer groups, stems from a belief in supporting advisers who want to put their clients’ interests first.
Existing outside an institutional framework is the only true way that any adviser can absolutely put their clients first. As an adviser or an advisory business, it’s the key way to differentiate yourself and your business, because reality shows few advisers want independence and most are happy to exist within an institutional framework. Being outside that framework is something I’ve long believed in, so I’ve tried to find and support like-minded advisers who share that belief.
This journey started in 1991, when I came to the conclusion there were several opportunities I wanted from financial planning. Further, I wanted to offer the same opportunities to other advisers:
- The ability to put my clients’ interests first;
- The ability to offer a reliable and proven investment process;
- Collaborate with other like-minded advisers to develop a strong culture of intellectual sharing;
- Act as a mentor to those coming through who are seeking guidance.
In 1991, the ability to put clients’ interests first, wasn’t a hard thing to do. These were the days when there were still regular contribution products which secured big upfront commissions. Then there were trips overseas and all sorts of goodies – of course, essentially all paid for by the client! Common sense dictated that sooner or later, clients wouldn’t want to continue to foot the bill for these product structures and cost excesses.
A reliable and proven investment option became obvious when I researched the benefits of Asset Class Investing. Academic research has proven markets are efficient, risk and return are related, diversification is essential and portfolio structure is the major determinant of investment performance.
This attitude towards investment has proven successful for clients, as it’s helped to lower costs and taxes, while removing speculation from the investment process. Further, I’ve always stressed the importance of keeping clients disciplined throughout their investment journey.
Finding like-minded advisers is always a challenge, but once found, those advisers who share a collective belief aren’t hard to keep together. A dealer group that holds a genuine interest in sharing and benefiting from collective knowledge and experience, can offer significant value.
Mentoring across a dealer group is particularly valuable because it encourages and strengthens newer advisers and their businesses. It bridges the gap in experience between younger and older advisers, and in return, it strengthens the dealer group itself. Not to mention the significant personal satisfaction when an adviser and their business begin to flourish in the way they imagined.
Running a privatelyy owned dealer group isn’t easy, but there is huge satisfaction from supporting advisers who have the goal of putting their clients first.
Peter is the managing director of FYG Planners. He is a Certified Financial Planner (CFP) who started in the financial services industry in 1981. A specialist in business development, Peter’s role primarily focuses on providing strategic planning advice to FYG Planners on its future direction, improving the technical skill base of the group, identifying business growth opportunities and services that can be developed for use by FYG Planners Advisers. Peter is also the founder of Mancell Financial Group, one of only six CEFEX certified fiduciary financial advisors in Australia.
Via: No More Practice
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