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Vow Financial CEO Tim Brown says brokers who choose to add a wealth offering into their business will improve their overall value proposition and client retention.
Mr Brown told The Adviser that there are a number of ways a broker can introduce a wealth offering, either through referring to a financial planner, employing a financial planner or becoming one.
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“At Vow, we offer all three models. The most common is referring to a financial planner, as this gives the broker the opportunity to continue to do what they do best but introduce a specialist as required,” he said.
“Vow prefers [it when] the broker maintains the relationship and now encourages the broker to attend any meetings where their client is involved.”
There is a real incentive for brokers to add a wealth offering, according to Mr Brown.
“There are a number of ways the broker can be remunerated. They can get a referral fee, which is reflective of the cost of an acquisition fee the planner would have to pay if they were to source their own client,” he said.
“By getting other forms of remuneration, this will assist the overall value of the broker’s business and recession-proof their business when the residential market slows.
“There are a number of reasons a broker would [choose to add a wealth offering]: client and asset protection, maintaining an ongoing relationship [and] regular reviews, which alerts the broker to identify other opportunities as client circumstances change, improves the broker’s overall value of their business and client retention.”
