Adviser Entities to Evolve.........

Last time, I made general reference to the general changes that might be facing the various shapes and structures of adviser distribution entities present in the NZ market currently. This time, I will be more specific.

The impact of the regulatory, legislative, and market forces will leave very few people or organisations untouched, and while the FSLAB may not be the final version that is enacted by the new Government, there are already alternative regulatory pathways emerging that are no doubt the subject of considerable discussion within the Boards of the existing adviser distribution companies. It is also likely that there will be some slippage in whatever timetable has been published, but this is no reason to delay considering the future – this applies to everyone from individuals to large organisations.

So, I’d like to make more specific reference to where those pathways might lead and to present one adviser distribution entity that has already been established with a specific Adviser segment in mind.

As has happened overseas where regulation has been around longer than in NZ, distribution entities have been founded that have been established, owned, and managed by business people who have varying commercial backgrounds and experiences. Such individuals considering the impending regulations see opportunities in the changes in the financial advice space and will seek to attract Advisers to their organisation.

Some organisations will seek licensed status as a Financial Advice Provider and may be set up to attract both Nominated Representatives and Financial Advisers. 

These distribution organisations will see an advantage in a hybrid structure containing Nominated Representatives operating under the organisation's license, and also housing Financial Advisers, likely to be licensed under their own corporate entity, but contracted to the parent to access additional services. 

While it is way too early to get hot and bothered over details just yet, it’s clear that some fairly serious strategic planning has to be undertaken by the existing players in the NZ distribution space.

There will be other entities that emerge focusing exclusively on those Advisers who operate under their own brand identity and who wish to continue to occupy that space in the market.

One such entity that has been recently established is AdviceNet – and here I have to disclose and declare an interest as I am a Director and shareholder of the company.

The concept of AdviceNet was developed by Tony Vidler, well-known to many in the industry, and the bulk of the heavy lifting in getting the company together has been carried out by Tony.

At this point, I need to emphasise that this is not a traditional “Dealer Group” structure – it is a network of like-minded independent financial advisers who wish to retain their freedom, maintain and grow their businesses, and be in control of their own destinies.

Nominated Representatives are unlikely to find our proposition attractive, but for those who are intent on continuing expansion of their brand as Financial Advisers, AdviceNet has a comprehensive offering to consider, ranging from enhanced cash flows to a unique ‘warm’ client introduction strategy.

So what does the ideal AdviceNet participant look like?

  • FA, or AFA-ready, or happy to do what it takes to move to AFA level quickly - career professionals
  • Building their own brand
  • Commercial in-focus - seeking to build a genuine business with capital value
  • Philosophically believe in providing objective advice/solutions based on evidence, research, suitability, and quality
  • Ideally, have the ability to leverage their business beyond their own efforts if AdviceNet can drive more opportunity to them
  • Decisive, self-dependent, and responsible - self-starters who regard change as an opportunity

This not a definitive list of requirements - merely a set of guidelines that we think would bind together a cohesive network of similarly inclined advisers to mutually beneficial relationships.

So, if you come across any advisers who fit the bill, please let them know that there is an organisation that will welcome an opportunity to discuss facilitating their objectives.

AdviceNet represents the next generation of Adviser distribution entities, and the road ahead looks exciting, challenging, and rewarding for those that seize the opportunity.


David Whyte