Don Wiggins Chairman My Dealer Services Pty Ltd (MDS) has announced that they have witnessed a significant rise in demand as advisers seek to become self-licensed.
MDS a specialist support service provider for advisers seeking their own Australia Financial Services Licence (AFSL) says that they are experiencing a substantial leaning by practice owners opting to operate under their own licence. The provider has received more than 50 AFSL’s for advisers, in the last six months. This is not surprising considering the new FOFA reforms coming into effect and Wiggins has suggested that the motivating factors behind the switch are: greater flexibility, independence and dealer group dissatisfaction.
The results were highlighted in the recent CoreData research findings indicating that 23.3% of advises expect to switch licensees in the next 12 months with 14.3% intending to take out their own AFSL.
Wiggins has commented that he “expects that once FOFA is bedded down and advisers realise that it is manageable, there will be even greater motivation for advisers to part from with their often rigid licensees. But to put more effort into servicing clients rather than licence management, advisers will have to make sure they outsource their back-office administration to a reliable business.”
Wiggins has stressed the importance of “the convenience of controlling one’s own destiny”, being a mitigating factor for the increase and, “leaving the back office to others at a cost usually far less than one that is currently required to be paid to the traditional dealer – is a compelling argument to take out one’s own AFSL.”