The Association of Financial Advisers (AFA) has wrapped up its GenXt Roadshow with a call for all advisers to start to think beyond the proposed FoFA reforms.
Speaking at the GenXt events held nationally during February, AFA CEO Richard Klipin said he was optimistic about the future of the advice industry.
I’m starting to see advisers stand strong and proud about what they do
“Let’s start to talk about the world after FoFA,” Mr Klipin said. “I’m starting to see advisers stand strong and proud about what they do.”
“FoFA is going to challenge all of us on who we deal with, what value we deliver and how we charge for that value. But many people are already beyond this. And when you talk to these people they have more robust businesses, and better control of their revenue.”
Guest speaker Steve Prendeville, whose firm Kenyon Prendeville specialises in the sale of financial advice businesses, echoed Mr Klipin’s sentiments about the positive outcomes from the reforms.
“When determining business value,” Mr Prendeville said, “the more information you can supply the better.
“The number one area to improve business value is through client segmentation. Know your clients. Know the demographics – age, location, occupation. Buyers are not just looking at your current revenue stream but also at opportunities within that client base. The more that you can articulate what your clients look like, the more confidence there will be from the purchaser, and the more likely you will be to achieve a premium.”
New AFA President, and 2008 AFA Rising Star winner Brad Fox, also highlighted the importance of the AFA’s Make a Plan campaign in changing consumer perception of the advice industry.
Sharing some examples of the way the Make a Plan television advertisement may look, Mr Fox asked all AFA members to dig deep to support the initiative. Advisers who donate to the campaign have the opportunity to list their businesses on the AFA’s Make a Plan website, which will direct customers to advisers in their local area.
And in a show of unity within the industry, the AFA Foundation joined forces with the FPA’s charity partner, the Future2 Foundation, to donate $10,000 to the Friedreich Attaxia Research Association (FARA). Speaking about the partnership, which is a first for the two associations, Future2 Chair Steve Helmich said: “This grant opens the way to Future2 working more closely with the AFA Foundation and members of the AFA, and Future2 welcome that.”
