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Jessica Darnbrough
Increased legislative requirements and a flat property market are forcing many brokers to consider their future in the market, Full House Finances has claimed.
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Speaking to The Adviser, Full House Finances’ Ian Miller said while many brokers are considering their future in the marketplace, their desire to provide clients with ongoing quality service is ultimately stopping them from packing their bags.
“I am finding many brokers want to leave the industry, but they don’t want to leave their clients high and dry,” he said.
“They could sell their book to another company, but not only are their books often undervalued by the purchaser, but the purchaser has no desire to look after the broker’s clients on an ongoing basis.”
This is where Full House Finances comes in.
In a bid to boost his own client database and help his peers exit the industry, Mr Miller launched a side section to his company that enables him to set up an agreement with a broker who wants to leave the industry.
“I agree to pay them a monthly instalment (replacing their trail) over an agreed period of one to five years, and in return, I acquire their business and client database. It really is a win-win-win for the exiting broker, their clients and Full House Finances,” Mr Miller said.
“With this system, brokers can rest assured that their clients are not abandoned. In fact, they will be serviced to a exceptional standard with a full suite of financial services allowing clients to buy, invest, grow and protect their assets. In addition, these brokers will receive ongoing passive income, following their departure from the industry.”
Historically, brokers who sell their book can expect to receive about 1.2 times what the book is worth.
According to Mr Miller, brokers who liaise with him can expect to receive up to three times what their book is worth.
“It seems to me to be the best solution for everyone.”
