FSP restructures paraplanning model

Firm adds life risk SOA

By Kate Kachor
Tue 08 Jul 2008

Financial Services Partners has outsourced its paraplanning operations to up to four separate businesses.

Dealer group Financial Services Partners (FSP) has restructured its internal paraplanning with the firm deciding to outsource its operations to up to four separate businesses.

The decision to outsource comes as FSP experiences a boost in adviser numbers following the integration of Tandem Financial Advice planners.

"There are a number of providers. We didn't just want to rely on just one business, because what puts the turnaround times under threat is bottlenecks within divisions, which we learnt from our own experience," FSP chief executive Geoff Rimmer said.

"We wanted to have the capability in a year's time to have 2000 plans a year. It's currently at 1500 and an imperative that goes with that is that having the planned preparation capability is one thing but it's the turnaround times that are vital."

As part of the restructure, FSP has also introduced a new life risk statement of advice (SOA).

"The important part of our strategy is that we wanted our pure financial planning firms only to either embrace life risk in their own firm or do so with an affiliation. To do both of those things we think that it's vital to be able to produce a life risk SOA," Rimmer said.

"So that means we are going to be able to broaden the distribution capability for what goes on in life risk. We think that life insurance is a vitally important part of any financial planning program regardless of one's age."

In December last year, ING bought FSP for $50 million.

As part of the deal, ING's adviser firm, Tandem Financial Advice, was integrated into FSP.

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