Announcing its decision to “simplify” its distribution arm and transition out of its self-employed and aligned adviser networks, Guardian Advice and Suncorp Financial Planning, Suncorp said it will give its advisers six months to find a new home.
However, Mr Prendeville – who also owns dealer group consultancy Forte Dealer Solutions – said six months is not an adequate amount of time for Suncorp-aligned advisers to make an appropriate judgement about where they should relocate.
“They have an extremely tight timeline [to find a new home], plus they will also have to manage their business on a day-to-day basis,” he said.
“To really plan a successful position and to ensure you go to the right home normally takes a period of somewhere between three to six months.
“[Also], to go for your own licence, it takes a significant amount of time to do the application, go through ASIC to be approved and then get in all the other third parties that you are required to operate your own licence,” he said.
Given that December is generally a slow period for the financial services industry, Mr Prendeville said this will also present difficulties for Suncorp advisers trying to put in an AFSL application.
He added that due to the licensing conditions that were imposed on Guardian Advice by ASIC, dealer groups looking to take on advisers from this licensee will have to undertake thorough compliance checks to ensure they do not let in a “Trojan horse”.
“It could be that the dealer group will require them to put in their own compliance to get a level of comfort. There is an element of hyper compliance awareness, and the only way that they will be able to get that comfort is if the dealer group goes into a business and conduct their own audit,” he said.
Following Suncorp’s decision to no longer manage its Guardian and Suncorp Financial Planning licensees, the bank has partnered with non-aligned groups Bombora Advice, Centrepoint Alliance and Infocus Wealth Management to help relocate its displaced advisers.
Glenn Beard: AMP has multiple financial planning groups (especially since the takeover of AXA), so closing a few and moving the planners to other groups in AMP is probably not as onerous as what Suncorp is doing in closing both of their financial planning groups. But I agree consolidation of financial planning groups within a company will continue.
ASIC did a lot of damage to the distribution channels at Suncorp Life.
Kind regards,
Adrian Totolos.
Business Analyst.
Why has AMP, Macquarie and now Suncorp closed or is closing down dealerships- licensees in recent times??? I feel there will be great rationalisation in the next 2-3 years as risk commissions drop and the number of risk advisers walk away. Best of luck to advisers looking for new homes in the next 210 days.