To achieve economies of scale dealer groups are rapidly expanding via acquisition

ASIC is targeting aggregator licensees to ensure they maintain advice quality

Strategy Steps is meeting growing demand for scalable solutions such as outsourcing

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A regulator focus on rapidly growing financial planning aggregators and on new training and assessment standards for financial advisers has led to a call for financial planning groups to consider quality outsourced technical and financial planning strategy solutions.
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Assyat David, Director of Strategy Steps, said that financial planning aggregators are looking to grow via rapid acquisition of advisory businesses, a trend that has attracted the attention of regulator, the Australian Securities and Investments Commission (ASIC), which has said it will target these groups to ensure advice quality is maintained.
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“There’s a justifiable fear that rapid acquisition activity may distract financial planning groups from their core business of servicing clients due to the difficulties of ensuring that support services keep up with the size of the group and in turn compliance obligations may be breached, putting licence conditions at risk,” Ms David said.
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“The increasing compliance burden is a challenge for advisory groups but also means individual advisers may need assistance to offer clients the most up-to-date information on legislative changes and relevant financial planning and technical strategies,” she said.
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The regulator has also announced proposals for a new training and assessment framework for financial advisers which, if implemented, would mean all advisers may have to pass a financial services competency certification exam and undertake a Knowledge Update Review every three years on changes to laws, market issues, new products and professional development requirements.
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“New training and assessment standards will raise the bar for financial advice, but will also place added pressure on advisory groups,” Ms David said.
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Ms David says regulatory and compliance pressures and a move to fee for service are prompting advisory groups to consider an external outsourcing solution to ensure support services keep up with the needs of the group and to offer timely, client-focused financial planning strategies.
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Strategy Steps’ own Desk Caddie package offers timely legislative and technical updates; as well as practical step-by-step financial planning strategies. Importantly, the package also contains ideas on how financial planners can use current strategies to generate new business and marketing opportunities.
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“Top quality outsourcing solutions empower financial planning groups to grow, while assisting advisers to remain productive and client focused in the face of constant market and legislative changes,” Ms David said.

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