- Paragem helps five planning practices get their Australian Financial Services License in 2011
- New clients highlight the growing importance of non-aligned financial planners for the future of the financial services industry
Independent service provider Paragem is set to continue the strong growth in its dealer services and licensing businesses as reported in January this year, with five new planner practices currently in the process of securing their Australian Financial Services License (AFSL).
The increasing number of planners opting to break with product-aligned dealer groups in search of genuine, conflict free dealer services has seen Paragem, the largest independent provider of dealer services to the IFA market, introduce five AFSLs to its network in the last two months.
Paragem director, Ian Knox, said the growing number of practices joining the Paragem network was evidence of the demand being driven by clients, advisers and regulators for conflict free advice.
“As regulatory changes and Australian consumers increasingly demand conflict free financial advice, IFAs will be of growing importance to the financial services landscape, particularly in terms of building the community’s trust in our industry. We are certainly seeing an uptick in demand from advisers wanting to make the move and we expect IFAs will become a larger part of the planning community in the future,” Mr Knox said.
David Smith of Hub Wealth Management, Paragem’s latest licencee, said he and business partner, Andrew Wiefler, were driven to seek out their own AFSL because it meant they could provide conflicted-free advice that is more tailored and relevant for clients.
“Obtaining our own AFSL has meant we have full flexibility to access an extensive array of quality research, while also conducting an in-depth review of the quality and cost of available administrative solutions. This combination is critical when selecting optimal investment and strategy solutions for individual client needs. It also means we can respond quickly to changing circumstances. It all comes down to a firmer foundation from which to achieve better results for clients,” Mr Smith said.
Mr Smith said he was surprised to find the process was relatively straightforward. “We went into this exercise expecting to be overwhelmed with admin and compliance but have found with the support of Paragem the process has been quite simple. Yes, there are more responsibilities and obligations under your own AFSL However, the freedom it provides so you can control your own destiny and clearly demonstrate to clients that our interests are aligned with theirs makes the extra effort worthwhile,” he said.
