CBA 'no longer a plus' on adviser CVs

Catalyst Compliance managing director Steve Murray said AFSL holders are avoiding employing advisers who have previously worked for firms that are known for having a poor reputation such as AAA Financial Intelligence, Morrison Carr and Storm Financial.

“Even Commonwealth Bank is no longer a plus on an adviser’s CV,” Mr Murray said.

“Irrespective of the fact that an adviser has a blemish free history, an association with a troubled [AFSL] can be enough to convince a new licensee to avoid that adviser – they don’t know whether the adviser was one of the 'bad' advisers or not and are not willing to take the chance,” he said.

Mr Murray said advisers should be wary of a number of factors when choosing a licensee, including low cost business models. He also suggested they talk with other representatives that operate under the licence.

Echoing Mr Murray’s comments, Australian Capital Financial Planning managing director Barry Parker said advisers who are looking to join a new licensee need to do their research and look into compliance practices and “how robust their business model is”.

“Being part of a dealer group with problems is going to reflect badly on any adviser, no matter how clean their personal record is,” Mr Parker said.

“Advisers should think about cost structures that suit them of course, but they also need ensure they are not risking their professional reputation to save a few dollars,” he said.

Commenting further, Mr Parker said advisers need to watch out for licensees that seem less strict on compliance as it “might be easier” in the short term but “could come back to bite you”.