Adviser Seek

What to look for!

Changing your licensee is a big deal but necessary for many advisers in today’s turbulent environment.  If you are considering a move, or are forced to move, be aware that new reference checking and information sharing protocols were introduced in late 2021 which focus on adviser performance history, compliance, conduct and risk management (see ASIC INFO 257).  In other words, your past will travel with you.

The next most important criteria at the moment is to have passed the adviser exam.  Without that, your options are severely limited.  If you have passed, there are still many things to consider.

Licensees have been forced to become very choosy about who they take on board.  One wrong choice can adversely affect the whole group.

Regardless of the size of the size of the adviser business being recruited, there is a lot of admin work involved so a licensee will often favour larger practices business with strong compliance and risk management systems.  This can result in some smaller practices and sole practitioners having fewer opportunities to move; or it may be more costly.

So if you are in a position to move, and you do have a choice of licensee, it is important to find the right fit.  Not all licensees are the same.  For example, not all have the same product authorisations, e.g. not every risk / super / investment licensee has an authorisation for direct shares.

And then there is the question of what support you need and whether the licensee can provide it.  There is usually BDM support and other general marketing support across a group, but if you are looking for specialist support (e.g. business coaching / practice building / tailored marketing), it may be at your cost.

I am unbiased when it comes to licensees because I provide services to advisers in different groups across Australia.  When asked, I suggest the panel of licensees who support my services, because they are the groups I know best and they know me.  However, it always comes with the proviso that the adviser seeking to change should take the time to do their own research in terms of achieving the right fit.