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Jessica Darnbrough
The introduction of licensing and regulation has forced a greater number of brokers to consider their future in the industry.
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According to industry stakeholders, the level of industry consolidation is increasing as brokers start to feel the full effect of the NCCP Act.
Late last year, Advantedge launched a program that helps brokers retire from the industry by selling their book or grow their business through acquisition.
Speaking to The Adviser, Advantedge’s head of financial solutions Craig Saville said the program had already enjoyed significant uptake.
“The impact of legislation is starting to be felt throughout the industry. Some are seeing it as an opportunity to grow their business, while others are wanting out of the industry as they struggle to deal with the increased paperwork and legal responsibilities,” he said.
Mr Saville said those leaving the industry saw benefits in entrusting their book to a professional, rather than letting the trail run down naturally.
“You can make a significant amount of money from selling your book. And this can go straight into your super account. The problem with selling a book yourself is that it does take a fair bit of time to prepare the book for sale.
“You need to deal with someone you trust and that is reliable. You want to make sure the legals cover you if something goes wrong. You want to make sure you have done your due diligence on your book to ensure not only is everything covered off, but you understand what your business is worth and you are getting the right compensation.”
