{"id":36752,"date":"2017-04-18T17:45:50","date_gmt":"2017-04-18T06:45:50","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=36752"},"modified":"2017-04-19T16:42:02","modified_gmt":"2017-04-19T05:42:02","slug":"exit-strategies-clouded-by-lif-changes","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2017\/04\/18\/exit-strategies-clouded-by-lif-changes\/","title":{"rendered":"Exit Strategies Clouded by LIF Changes"},"content":{"rendered":"<p>Advisers looking to exit their business in the next few years have seen their strategies placed in jeopardy, despite receiving a clearer picture around life insurance remuneration arrangements and professional standards requirements.<!--more--><\/p>\n<figure id=\"attachment_31130\" aria-describedby=\"caption-attachment-31130\" style=\"width: 145px\" class=\"wp-caption alignright\"><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2015\/09\/Paul-Tynan.jpg\" rel=\"attachment wp-att-31130\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-31130\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2015\/09\/Paul-Tynan.jpg\" alt=\"Connect FS Chief Executive, Paul Tynan\" width=\"145\" height=\"184\" \/><\/a><figcaption id=\"caption-attachment-31130\" class=\"wp-caption-text\">Connect FS Chief Executive, Paul Tynan<\/figcaption><\/figure>\n<p>While these events have created some certainty around the future shape of the advice sector, Connect Financial Service Brokers Chief Executive,\u00a0<strong>Paul Tynan<\/strong> said they have also raised the question of when mature age advisers should exit the market.<\/p>\n<p>Referencing the end of non-risk trail commissions under the Future of Financial Advice legislation, Tynan said new advisers will struggle to enter the industry, particularly through the purchase of an existing business.<\/p>\n<p>\u201cBuying an existing business under a new AFSL will mean no trail brokerage can be transferred thus deterring the next generation of planners to enter the market,\u201d Tynan said.<\/p>\n<p>\u201cWith the increases in compliance, licencing, PI costs, new entrants will have no option but to start their financial planning career with an institution,\u201d he said, adding that this will impact the exit goals of older advisers as new entrants struggle as small business owners in their start up years.<\/p>\n<h6>\u201cIf now is not the time to sell \u2013 then when?\u201d<\/h6>\n<p>He also said advisers continuing to defer the sale of their practice expecting a higher price later on were making an \u2018erroneous expectation\u2019 and only successful businesses with modern operational frameworks were attracting interest from buyers.<\/p>\n<p>According to Tynan, advisers can either sell in the current buyers\u2019 market and look for a strong valuation multiple or continue to receive an income stream from their business.<\/p>\n<p>He warned this second strategy was dependent on current business valuations holding up as the advice sector moved further into a fee for service world and also required advisers to meet new education requirements that may eventually stop them from being licensed and receiving trail brokerage.<\/p>\n<p>Tynan said financial advisers had hit a \u2018perfect storm\u2019 around the issue of exit and succession \u201c\u2026and staying out at sea in a rapidly deflating life raft is not the answer&#8221;.<\/p>\n<p>\u201cIf now is not the time to sell \u2013 then when?\u201d, Tynan said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Advisers looking to exit their business in the next few years have seen their strategies placed in jeopardy, despite receiving a clearer picture around life insurance remuneration arrangements and professional standards requirements.<\/p>\n","protected":false},"author":3,"featured_media":36769,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6831,5],"tags":[4247],"class_list":["post-36752","post","type-post","status-publish","format-standard","has-post-thumbnail","category-practice-marketing","category-services","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/36752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=36752"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/36752\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/36769"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=36752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=36752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=36752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}