How to Match a Licensee to Your Business
In my role as Managing Director of a Financial Planning Licensee I have the pleasure of speaking with advisers who are considering their existing licensee arrangements.
In recent weeks I have spoken with many former Dover advisers who have had to urgently make a decision regarding a licensee to partner with. I have a lot of sympathy for all the advisers who were placed in this situation with little notice. This event has had an enormous impact on both advisers, their staff and clients.
An outcome from these conversations has been a broader issue of how do you match a licensee to your business needs? If you are considering a change of licensee I urge you to complete some analysis of your business needs. Spend some time thinking about where your business is heading and what do you need to get there. Eg – if business development is important to you what access will you have to a Practice Development Manager or Business Coach?
Considering a change of licensee?
I can definitely confirm that after recent adviser recruitment conversations, that a change of licensee can be a daunting process for most financial planners. There are many factors that come into play, and recent Industry events have probably added a few more questions to the process. However as previously stated – you must know what are your business goals, what weaknesses would you like support with?
At Futuro we believe there are five key issues to be examined that should be at the forefront of any decision making around any licensee evaluation process. We believe these issues must be considered before any discussion around pricing.
- Market Reputation of the Licensee and Senior Management
- Regulatory Engagement
- Business Agreements and termination clauses
- Support to manage and mitigate risks
- APL – are there any restrictions
Licensee Due Diligence Checklist
- We have developed a detailed checklist for financial planners to use in assessment of a future licensee. We strongly recommend you obtain a copy to assist in your search.
At Futuro we want to build long term relationships. We need to understand how are we going to provide value in this relationship?
If we cannot we shall refer you to another licensee who we feel will be a better fit for your business.
Our Directors, Paul Kelly, Dennis Bashford and Manoj Pillai have a total of more than 80 years of Industry experience.
To speak to one of us please call our office on 07 3018 0400. Or email firstname.lastname@example.org
Futuro is a community of advisors built on group commitment, trust and companionship. We are unique in many ways but this core belief and ability to bring our advisors together, often to work with each other and thrive is what sets us apart.