Dealer group Capstone Financial Planning (Capstone) is reviewing the business models of its financial advice network in readiness for changes to industry remuneration models.
The reviews are an extension of existing procedures within Capstone and follow a number of initiatives made by the group, Capstone Financial Planning managing director Grant O’Riley said.
Two months ago the group sent out a national survey to its 70 advisers calling for feedback on the FPA’s proposed changes to the advice industry’s remuneration model, O’Riley said.
“Within our group there is a good degree of acceptance about change and pushing further down a fee-based environment. Some of them are well and truly down that path already and we have no issues,” he said.
“The focus is to educate those practices that need further knowledge on justifying their value proposition. To ensure whatever charging structure they choose to apply that the client is getting the level of service the client desires.
“So there are some that need greater education, there are some that are coping very well, there are some that will need to improve their model slightly.”
As well as seeking feedback from its adviser network, it also enabled Capstone to seek a discussion from the industry, including FPA chief executive Jo-Anne Bloch, O’Riley said.
“We wanted our adviser’s to hear first hand from the FPA on what they envisage the future may present. Jo-Anne’s presentation provided our advisers with a better understanding of the work the FPA was undertaking on behalf of the industry and some clarity around the their submission to the PJC [Parliamentary Joint Committee] on adviser remuneration,” he said.
“Obviously this is an ongoing process. We will keep working with our advisers over the next 12 months to ensure their businesses do not lose momentum at a time when market conditions are improving.”
