The introduction of FAP licensing has seen a rise in smaller, more specialised adviser groups, which typically offer a high level of support to a select group of advisers with regards to their processes, training and technology.
The process of joining these groups is usually different to joining a larger aggregator, and Financial Advice Provider Services founder Cecilia Farrow said the key thing she considers when taking on a new adviser business is the cultural fit, as well as the performance of the business.
“We have standards, and we require businesses to demonstrate those to be part of what we are doing,” Farrow said.
“It’s really about making sure that the cultural fit between us works, and that there’s alignment around the values we have regarding comprehensive advice and professional development.”
“If advisers come on board, we’re delivering tools and capability to them around how they deliver advice - and if that’s not how they want to do it, then there’s going to be a complete disconnect,” she explained.
“Our key relationship and sales development manager is the one who is out there in the market, meeting with business owners who we think could be a good fit.”
She said that advisers have the opportunity to look carefully at the group, and to ensure that it offers a value proposition that suits their business. She said it is also important for businesses to be high performing, given the level of investment that FAP Services makes into all of its members.
“We’re opening up the dialogue and working through a process where the advisers look at what we do, and check that it’s going to work for their business and that there’s a good value proposition there,” Farrow said.
“Then we do our own due diligence to make sure that they’re the right fit, and that they have the right capabilities within their business to be able to engage with high net-worth personal risk advice, SMEs and agribusinesses.”
“We really want our advisers to be market leaders in their community around business risk,” she explained.
“Businesses do need to be performing well, otherwise we can’t justify the level of support that we’re providing.”
“Many other dealer groups have a ‘user pay’ model, whereas our advisers come in on the basis of us receiving the FAP override, but there’s complete transparencies between all parties around that,” Farrow added.
“That really allows us to deliver the level of support that we provide, and that includes the technology, the CRM, and everything else that we offer.”
