A recent survey of advisers about their future plans appears to reinforce the contention that some advice practices are prepared to consider changing their business model in order to continue serving their clients.
Survey feedback provided to Riskinfo by dealer group, Life Plan FP, indicates that a proportion of advice business owners are keen to explore the possibility of stepping back from giving advice and becoming a consultant to their clients under the Life Plan Partnership Program option, or of linking with licensee firms who offer expertise in how to structure a general advice model proposition.
While the Life Plan general advice model has previously been reported by Riskinfo (see: Life Plan Expands Offer…), the feedback it has received following its most recent webinar appears to demonstrate growing adviser interest in the two models the dealer group is offering.
Popular survey responses included those where advisers were keen to learn more about the Life Plan Partnership Program or general advice model and/or where advisers were interested – at the very least – to discuss what their future options may be, which may allow them to continue their career in the event they fail or don’t sit the FASEA Adviser Exam or meet minimum educational qualifications.
Prolonging an advice business service offer
Speaking with Riskinfo about the feedback his firm has been receiving, Life Plan Principal, Mark Dorling, said he was encouraged by the interest that was being shown by advisers in the prospect of either the Partnership Program option or developing a general advice model.
Dorling said “Our Partnership Program will allow Advisers to continue to maintain the strong relationships they have already built with their clients over the years, without having to give advice and therefore deal with any of the new educational and compliance requirements. The Advice is provided by a selected Life Plan FP adviser in partnership with the original Adviser who retains full visibility over his client book.”
He also observed that another thread of consideration among advisers revolved around how they may look to pass the FASEA Adviser Exam by September 2022, which would prolong their ability to serve their clients under their present advice model until at least 1 January 2026, after which time all advisers will be required to meet the minimum education standards mandated by FASEA.
Dorling told Riskinfo advisers contemplating this path fall into three main categories:
- Those seeking to pass the FASEA Adviser Exam by 30 September 2022 but convert to a general advice model from 1 January 2026 because they will not have achieved the minimum education standards required by FASEA
- Pass the FASEA Adviser Exam by 30 September 2022, but develop a succession plan for their business and depart the sector by 1 January 2026
- Those preferring not to undergo any of the FASEA education requirements, stepping back from giving advice and working in a partnership program from now until beyond 2026
Dorling says he appreciates there exists a large number of advisers who have yet to both pass the FASEA Adviser Exam and achieve minimum education standards, but still intend to do so. For those who don’t fall into that category, however, Dorling says the Life Plan Partnership and general advice models offer viable alternative solutions that many advisers have not contemplated, but now have the opportunity to consider and discuss for the first time.
Advisers can click here to access additional information via a free information webinar being conducted by Life Plan this week.
See also the result of Riskinfo’s recent poll question around this issue: Advisers Divided Over Alternatives for Risk Specialists.
