AFSL application inquiries up 50%

Speaking to ifa, My Dealer Services director Alex Euvrard said the company has seen a 50 per cent increase in inquiries from advisers looking to get their own licence, with the number of advisers going on to apply for an AFSL also growing by a similar figure.

“We’ve also seen a different kind of inquiry or applicant,” Mr Euvrard said.

“Getting your own licence was kept to probably larger groups and/or people looking to do something a little bit different in the past, whereas now we’re seeing mainstream financial advisers actually inquiring as to whether they can, and whether there’s any benefit in running their own licence and breaking away from an institutional or dealer-group model.”

While Mr Euvrard said he can’t comment on the industry as a whole, many of those speaking to My Dealer Services about getting their own licence were interested in doing so in order to develop more efficient policies than those enforced by larger groups.

“Dealer groups have to take a stance that they are protecting their licence, we understand that, and they have to develop a set of policies and procedures that fit a large group of advisers,” he said.

“Somebody looking to or getting their own AFSL can make a more practical decision around policies and procedures which reflect them and their business, not having to fit in-line with 250 advisers where they’re all having to fit the one set of processes.”

Commenting on the case of an AMP authorised representative found to have presented forged documents when applying for an AFSL, Mr Euvrard said he "welcomes" ASIC's activity on this matter and reminded advisers to present true and accurate information when applying for an AFSL. 

The comments follow research conducted by Momentum Intelligence and Forte Dealer Services, which found that 28.89 per cent of advisers looking to switch licensees are opting to obtain their own licence.