Sam Zervides

Principal and founder of Australian Wealth Solutions Pty Ltd (AWS) Sam Zervides has announced that effective this month, the advice practice will operate under the AFSL of Melbourne headquartered boutique licensee ASVW Financial Services Pty Ltd (ASVWFS).

Commenting further on the announcement, Sam Zervides said the move to ASVWFS was the first step in a long-term strategy to position the advice practice to address the needs of the modern, more sophisticated client in the rapidly evolving advisory services landscape.

In addition, a key objective of the AWS principal is to embrace the latest, best of breed new technologies and processes and apply them with the ‘human touch’ that has been fundamental to the success of the advice practice since its inception.

The move to ASVWFS also follows Sam Zervides decision not to renominate for the position of Victorian President of the Institute of Public Accountants (IPA) in last year’s election in order to focus on positioning the financial advice business for the future.

In welcoming AWS to ASVWFS, CEO and Director Stuart Abley said it was a pleasure to have them join the national licensee.

“Sam and the AWS team embody the very important fundamentals we are seeking in the practices that join our national network i.e. committed to building exemplary advice businesses that deliver the highest standards of compliant professional financial advice and client service”.

Changes in client expectations are shaping the structure of advice businesses and are irreversible affirmed Sam Zervides.

“It’s for this reason that I’m focussing my energies on the future and being ahead of the curve in responding to the needs of an increasingly sophisticated and mature client – many of whom reside interstate and overseas but still demand the highest standards of personal and accessible advisory services”.

Utilising the resources of ASVWFS, the first of two critical priorities for Sam Zervides will be to further improve the client experience through the utilisation of advanced technology, latest processes and innovation to improve engagement, outcomes and service.

New complementary financial and lifestyle services and value-add offerings are also being developed and well advanced and include a private wealth and finance offering.  They will be provided in-house or in partnership with appropriate alliance partners and recognise that financial strategies are not standalone undertakings.

The second priority reflects Sam’s commitment to AWS’s most important asset – the people that comprise the business.  In order for advisers and administrative staff to operate at their best, they will have access to skills training and ongoing professional development opportunities, as well as leading-edge technology.

Sam Zervides concluded, “The AWS team are very excited about the move to ASVWFS and the prospects for the future.

“In particular the benefits that will be derived through the application of new technologies designed to significantly improve the client experience and connectivity; enhance/streamline administrative processes; and accelerate the delivery of additional lifestyle and financial service offerings”.

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Commenting on his decision, Sam Zervides said he was very proud of what he had achieved during his term as IPA’s Victorian President, but it was time to move on.  Sam will maintain his association with the IPA and continue to oversee the local networking / focus group he has headed for nearly 14 years.

“2020 has been a year of unprecedented challenges for the financial services industry and many practices are still trying to come to terms with the dual impact CV19 and FASEA has had on their businesses.  Unfortunately, these factors, together with industry rationalisation have combined to polarise advice businesses into two distinct camps”.

One is pessimistic about the future and want to exit the industry as soon as possible.  The other is bullish and preparing to capitalise on the opportunities to come in the new era.

“AWS is most definitely in the second group and the manner in which we weathered the challenges of 2020 has served to validate our strategy and operational framework”, said Sam Zervides.

“Even though AWS was able to successfully continue its activities and provide the highest standards of advice and service, there is an immediate imperative to prepare for the new normal post CV19.  To be in a position to create value for clients as expectations, values, habits and demands are going to change”.

“These changes in client expectations are already shaping the structure of advice businesses and are irreversible.  It’s for this reason that I am focussing my energies on the future and being ahead of the curve in responding to these evolving client needs”.

Sam Zervides is adamant that those who fail to respond and continue with their business-as-usual pre-pandemic approach run the very real risk of becoming irrelevant and being left behind.

The first of two critical agendas Sam Zervides is focussed on is the client experience that prioritises the client journey and utilises technology, latest processes and innovation to improve engagement, outcomes and service.

New complementary financial and lifestyle services and value-add offerings are also being developed and well advanced.  They will be provided in-house or in partnership with appropriate alliance partners and recognise that financial strategies are not standalone undertakings.

It will take the provision of financial advice and professional services to the next level.

The second of Sam’s priorities reflects his steadfast belief that AWS’s most important asset are the people that comprise the business.

In order for staff to operate at their best, they need the best tools available to them i.e. friendly / efficient work environment, systems, technology, processes and achievable KPIs.

Sam also devotes a great deal of time personally coaching and mentoring staff as a winning culture starts by treating each team member as an individual and being responsive to their personal and professional aspirations.

“The team of planners, paraplanners and administrative staff are collectively central to everything we do: and if you ask any client or alliance partner what they like most about AWS, I know for a fact that dealing with the team will be one of their highlights”, said Sam Zervides.

Sam Zervides concluded, “As advice businesses grapple with the new decade and beyond, it’s clear a more strategic approach is needed, hence AWS laying a foundation for tomorrow.

“The benefits will be many and doing so reaffirms the significance of the relationship and services; demonstrates the creation of value for AWS clients; acts as beacon to attract highly talented, motivated employees; and positions the business for long-term growth and success”.

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However, as calm continues to return and health restrictions eased, accountants and planners should be harnessing the momentum of the pandemic to position their businesses to capitalise on post coronavirus opportunities – of which there will be plenty – but it won’t be easy!

First of all, the clock is ticking to a looming deluge of enquiries from concerned clients when the various government stimulus packages and goodwill of financial institutions, utilities, etc end in September.

Not only do accountants and planners need to prepare for this eventuality, they must do so while simultaneously future proofing their businesses to stay relevant beyond the aftereffects of the virus.

This requires re-evaluating what’s important, where value lies and how this value and the highest standards of compliant client advisory services can be delivered more efficiently and effectively.

Time should be used to shape advisory practices by cementing the client at the centre of the universe and then integrating the appropriate technology and workflows; including upskilling key personnel and staff.

Establishing or reaffirming strategic alliances and partnerships will also be crucial with benefits for clients via more comprehensive service offerings.  For the advice business the benefits of alliances include fast tracking growth objectives and capitalising on marketing opportunities.

Reflecting on the lessons of the coronavirus so far, first of all it reaffirmed the need and value of accountants and planners as ‘trusted advisers’ when clients turned to them in unprecedented numbers for solace during the onset of the pandemic as share and property markets collapsed, jobs lost and once viable businesses forced to close.

Not only were accountants and planners required to respond to an avalanche of enquiries from fear-stricken clients; they had to also interpret and articulate government economic stimulus programs while simultaneously restructuring their businesses to operate remotely under strict health and safety guidelines.

This served to affirm that technology is an enabler and advisory businesses can still deliver professional advisory services – and that staff have the capacity to be flexible and manage workflows and administrative tasks both onsite and remotely.

But by far the greatest attributes were the past experiences of practice principals and staying positive and focussed on providing comfort and reassurance to clients and staff.

2020 was not the first economic downturn for the majority of accountants and planners.  In the past two decades alone, they guided clients through the Dot Com crash of 2000, September 11, 2002-03 market downturn, GFC, 2015-16 decline and now the pandemic.

Furthermore, history has repeatedly shown that every downturn is followed by growth and new opportunities.  The coronavirus pandemic demonstrated once again that accountants and planners have a unique marketplace advantage as the trusted advisers that clients turn to in times of stress.

Hence the urgent need for advice practitioners to act now and ensure their houses are in order and ready for the future by building on this position in the hearts and minds of their clients.

In closing, although the future will a positive environment for established businesses, unfortunately it will be a difficult one for new accountant and planner industry entrants that will struggle to open a practice and establish a foot hold.

By Sam Zervides, Principal of Australian Wealth Solutions and Victorian President of the Institute of Public Accountants

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For those that failed to master them effectively, the ramifications have been devastating.

Not enough advisory businesses took the time in past years to scan the horizon and acknowledge not only the looming storm clouds – but emerging trends and opportunities that could enhance and improve their businesses i.e. the Five Rs.

Firstly, managing the Five R’s is not a task that can be delegated to the EA or underutilised clerk.  It demands the principal’s leadership, coordination and management as no one understands and appreciates a business better than its owner.

Risk: Accounting and financial planning advisory businesses operate under a cloud of internal and external challenges that includes increasing costs, downward pressure on margins, attracting and retaining staff, constant legislation / regulatory changes and heightened client expectations.

Those businesses that stood still and failed to adapt found themselves swimming against a tsunami of challenges that drowned their operations.

Renewal: Amongst the carnage, there were also those that chose to renew and reinvent themselves and their businesses.  Seizing the opportunity to explore new markets, harness alliances and implement operational efficiencies, pricing / service models relevant to the needs of the modern-day client.

Regulation: Constant regulatory changes and resultant compliance demands has become a key function and cornerstone for businesses.  The overwhelming need to get it right are enormous with the variety and complexity of regulations, directives, and laws shaping an advisory business’s everyday internal and external operations.

Because compliance violations can quickly lead to penalties, reputational damage, or even media coverage, there is a lot at stake.

With regulations only becoming more numerous and tighter, advice businesses need to plan longer-term strategies in order to deal with regulatory agendas.

Relationships: The best practitioners have treated and leveraged all their relationships as strategic assets.

The building blocks of any successful business relationship are the same as a personal relationship: respect, commitment, and trust.  Once established, the relationship transcends into clients being ambassadors for the business measured in referrals, testimonials and profits.

Reputation: Business reputation is more important than ever.  Although positive reputations are created over time from many interpersonal actions.  Negative reputations can result from a single action with catastrophic consequences.

The best advice businesses understand the link between building a great reputation and the client experience.  Every touch point reaffirms and reassures the client that the practice values them as a client and is dedicated to their financial well-being and attainment of their wealth creation goals.

Recently, the power of Australian Wealth Solution’s (AWS) reputation was demonstrated to me by the addition of Robert Taylor to our team.

It came about as the result of a combination of industry contacts referring Robert to AWS when his university lecturer Peter Moran sought an employment opportunity for his student.  Without hesitation, AWS was regarded as the employer of choice for the new industry entrant.

As advice businesses grapple with the new decade and beyond, it’s clear a more strategic approach that embraces the Five R’s is needed.  By doing so, it demonstrates the creation of value for clients; acts as beacon to attract highly talented, motivated employees; and positions the business for long-term growth and financial success.

By Sam Zervides, Principal

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Sam Zervides

The growing calls for government to stop interfering, over-regulating and irreparably harming the important financial planning and accounting sectors continues to fall on deaf ears with the economy, employment and consumers equal losers.

Planners and accountants could accept the decline in their livelihood if it was the result of new technologies, outsourcing, overseas competition or product innovation.  But it’s a bitter pill to swallow when it’s the result of relentless and incoherent reform and imposition of government red tape, over policing and escalating compliance costs.

Costs that are making the provision of affordable professional financial advice and services harder and harder to provide for clients – whilst simultaneously driving practitioners out of the industry.

The financial planning and accounting professions are predominantly comprised of SMEs.  Collectively they’ve been severely impacted by government-initiated reforms with the large institutions, fund managers and industry funds the major beneficiaries.

The legislators and advocates of industry reform have no appreciation or regard for the damage they’re inflicting and legacy being left in their wake.

In the June quarter alone 1,750 (or 6.4%) financial planners exited the industry, leaving just 25,470 practitioners across Australia.  What does this entail in real terms?

• 1,750 SMEs financial advisory businesses ceased
• 5,250 administrative staff unemployed or required to relocate if practice has been sold^[1]
• 525,000 Australian consumers impacted^[2]

If 6,000 plus planners exit the industry before 2024 as projected – it will impact 1.8million financial service consumers!  These estimates are absolutely mind numbing – and the impact on the SME sector, employment, economy and the financial welfare of affected consumers incalculable!

Accounting practices are also being decimated. July 2016 heralded the end of the dominance of accountants in self-managed superannuation – and access by consumers to an affordable, low cost, savings, investment and retirement vehicle.

The vast majority of accountants chose to cease this service and lost an important revenue stream as the cost of obtaining an AFSL and associated compliance and ongoing PD requirements were far too prohibitive.

As a result, the era of low cost SMSFs ended abruptly leaving clients no option but to abandon or restructure their SMSFs – or revert to an industry, retail or corporate fund – all at significant cost.

For practitioners that want to continue operating as SMEs in their chosen profession as planners or accountants – they should firstly forget about government benevolence and support.  Even though the Hayne Royal Commission exposed many failings in the activities of the large financial institutions – they will continue to be the ongoing beneficiaries of government policy.

Yet there is a solution for accountants and planners.  Many of their offerings overlap and they can continue to remain viable profitable enterprises by joining forces to deliver holistic relevant advice and value for their clients.

By working together in JV or alliance partnerships, the immediate benefit will be economies of scale, reduced costs and sharing resources to collectively assist clients address complex wealth creation, retirement, lifestyle protection and intergenerational wealth transfer aspirations.

Under current rules unlicensed accountants can’t discuss financial product related matters.  But doing so in conjunction with a planner providing the compliant SoA is an efficient, cost-effective framework that transforms the status of the accountant and planner to ‘trusted business partners’.

The power of the ‘trusted business partner’ will be realised through the alliance and creation of more comprehensive, cost effective, services and facilities, that in turn will enhance and deepen relationships with clients.

To this end, planners and accountants will be working more effectively and efficiently; have capacity to take on more clients; and charge appropriately, for providing greater value to their clients.

Although operating a professional advisory business in this challenging environment can be difficult – there still exist opportunities to operate sustainable and profitable enterprises.  The great differentiator is personal, professional, cost effective service that is something the large institutions and industry funds can’t provide.

By Sam Zervides, Principal

——–

[1] assuming 3 staff members per practice)
[2] assuming 300 clients per planner

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“I am looking forward to making a difference in what is a challenging future ahead for accountants,” said Mr Zervides.

As Victorian President, Sam will provide input to the national organisation on initiatives, programs and policies for the benefit of the association’s members.

Commenting on his new role as Victorian IPA President, Mr Zervides said he was very pleased to be taking on this role at such a pivotal and important time for the profession.

“The issues that keep so many accountants awake at night is how to deal with the constant change whilst transforming their businesses to remain viable and profitable.

“Keeping up with new standards, regulations and taxation changes; downward pressure on fees; technology; attracting and retaining both clients and talented staff; exit and succession; and work-life balance are universally accepted as the key concerns and challenges for the profession.

“Yet the solution to address all this doom and gloom is simple – ‘don’t be afraid to ask for help’.  The IPA is here to help and individuals like myself are happy and willing to share our knowledge, expertise and experiences.

“I’m looking forward to helping IPA member firms position their businesses to remain sustainable profitable enterprises by delivering holistic relevant advice and value for their clients.

“To do this requires accountants to go beyond being just the trusted adviser but to become the ‘trusted business partner’.

“The power of the ‘trusted business partner’ will be realised through alliances with mortgage brokers, specialist lenders, investment managers, insurers, corporate solicitors, and many more; underpinning new services and facilities, that in turn generates more revenue.

“To this end, accountants will be working more efficiently; have capacity to take on more clients; and charge appropriately, for providing greater value to their clients.

“Although living in a world of unprecedented change, the personal touch is a constant that is the foundation for business success.

“With so much static and background noise – the best accounting businesses will be those that excel in delivering outstanding, memorable customer experiences”, said Mr Zervides.

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