Advisers to seek new home under framework, says Synchron

Synchron director Don Trapnell said as the Life Insurance Framework “heralds a new direction” for the advice industry he expects more advisers will join his dealer group by the end of the year.

“We believe the catalyst will be that more advisers will be looking for non-institutional homes,” Mr Trapnell said.

“Synchron has a close connection with its advisers and whatever direction the industry takes we will not lose that connection.

“We believe our model will be very attractive to other advisers in a post-LIF world,” he said.

Mr Trapnell also added that going forward a lot of advisers will have to “adjust” to bring the new model into their business.

“As they currently stand, clawbacks are unjust – particularly for new advisers entering the industry – but overall, the LIF could have been much worse.

“It’s a matter of fixing the clawback issue and getting on with business,” he said.

Examining what affect the framework will have on its own business models, future revenues, and adviser sentiment, Mr Trapnell said these areas will all be explored at Synchron’s Management Planning conference in September.

“We hold management planning conferences every two to three years and as we have done in the past.

"We are bringing together senior external executives and senior Synchron advisers to provide us with insights into the direction they believe we should take, what we’re doing right and what we’re doing wrong – in particular, what needs to change. This time our focus will be on how to succeed in the new environment,” Mr Trapnell said.