In an XY Adviser webinar recently, Mr Fox said he expects the licensee space to “change incredibly” over the next couple of years.
“Licensees will have to find additional ways to provide value to their advisers,” he said. “More advisers are already heading down the self-licensing path.
“Whether that’s a good thing or a bad thing, I’m not sure; but larger licensees, perhaps those with more than 50 advisers, are going to need to have very good value propositions about how they bring efficiency and coaching and development to their advisers to have a competitive offer.”
Last week, ifa reported that another well-known financial adviser, Jenny Brown of JBS Financial Strategists, had obtained her own AFSL.
Mr Fox said that while he does not support licensees that are subsidised by a product, there are ways in which a vertically integrated model can work.
“I’ve never liked the thought that a licensee is subsidised by product. I don’t like that idea and I would like to think that one day, not too far down the track, that can stop,” he said.
“But there are aligned models and when I was in one of them, I certainly didn’t feel constrained at all by the ultimate owner of that licensee. I often went outside the APL when I needed to and didn’t get contested on that.
“It’s not the vertical integration model per se that is a problem; no matter who the licensee is, they’ve got to have a good value proposition.”
At the same time, if advisers feel conflicted within their dealer group, they should rethink their choices, Mr Fox said.
“I think individual advisers need to make their own very strong choices about how they fit in the ecosystem of financial advice… If they feel that they’re conflicted, they have to make a change.
“That’s their own brand, their own professional stance,” he said.
And if you really want to see a Fox’s true colours, having negotiated to halve incomes and double clawback periods, the Head of the AFA is not only championing vertically integrated businesses, but actually encouraging us to join them. FOFA was all about removing Vertically integrated conflicts, and ASIC in their current project has announced that they are closely looking at all the major vertically integrated dealerships. Fox is either a complete lunatic or on the FSC payroll. Time to resign Mr Fox.
Oh Bradley,
you are really a piece of work, “he does not support Licencees being subsidised by product”. What the hell do you think the AFA is doing. Talk about conflicted remuneration when the AFA accepts funds from every Life Office and Fund Manager. AFA would not survive financially without their financial support, hence the reason you and Debra Kent are dancing to the FSC’s tune.
Brad yourself and Debra do not represent the true AFA. You have shown no respect for AFA members, in fact neither of you have acted in the Best Interests of AFA Members.
If I treated my clients with the same disrespect I would have no clients.
Debra carries on about if the AFA held an EGM to oppose LIF and retain 100% upfront commissions it would destabilise the Association and heavily impact its ability to negotiate with Government.
Again you both are not listening to your members. I would say you are very concerned about holding an EGM, it will not affect our (AFA Members) standing with Government.
Of course it is supported by the Government and opposition, that is purely because yourself nor Debra Kent threw in the towel. I honestly feel that you both do not respect us, it seems we are the lowest of the low, that our concerns do not count, especially in this so called new world of Financial Advice. Yourself and Debra have done us more damage than any other AFA committee over the last 30 years I have been a member. Back then if an issue came to the for that was to affect our business it was sorted by the AFA and our members had a fair say. the AFA fought for us.
The EGM must go ahead, otherwise you are again as usual, saying our opinion is not worth listening to.
Every time you open your mouth Mr Fox it becomes clearer who is pulling your strings…The FSC have you very well trained!
Here is a tip for Mr Fox
The day the AFA stops being conflicted by taking “sponsorships and donations ” from insurers and fund managers is the day Licencees will need to take notice about not being “product dependent ” from Mr Fox
To say “I’ve never liked the thought that a licensee is subsidised by product.” while the AFA sups with the devil is just plain humbug. I am yet to see the AFA pick up the long spoon, not when insurers are compelling the advisers in their vertically integrated AFSLs to join either the AFA or the FPA