Markets have been running so hot that many dealer groups are not focused on growing adviser numbers. That’s the view of Apex Consulting principal Dugald Braithwaite, who says in the bull market environment businesses have grown organically so quickly that the need to add more advisers is dissipating. “Most groups grew in funds under management by about 30 per cent last year,” Braithwaite says.
“Anyone under 30 per cent still got a good result.” He says another clear trend in the past 12 months has been dealer groups refining the types of advisers they are seeking. “There will always be movement in the marketplace, but picking up the quality of adviser and those who sit well with the business model and the standard of advisers the group is looking for is always going to be tough,” he says.
Profusion Executive Management director Simone Mears has observed companies reassessing business models, rather than increasing numbers to optimise their business. “Future revenue is not just from bringing on more planners,” Mears says. “It is about having the technology and systems and investing in infrastructure which enables them to understand who their clients are, what assets the clients have and the kind of product and services the clients need. Yes, there is a drive to grow adviser numbers, but organisations are also looking to maximise current client bases.”
