Future-proof your financial services practice

By Mike Wood, director Apio Wealth

As few as 29% of financial services professionals have a succession plan in place or are ready for a planned or unplanned succession.

“Cutting a cheque” for a retiring financial service professional is a common practice that many larger financial services firms employ to retain clients during a succession or book buy. The current operating model enables this practice and allows advisors to sell their books to the highest bidder without fully considering the impact to their clients, relationships with those clients or their earning potential for the asset they have taken years to build. Advisors are being presented with compelling book monetisation options that could influence the outcome of succession for their current clients and their current practices.

Succession planning advice from Apio

The practice of trying to sway retiring advisors is not new and most firms have processes in place to help minimize asset loss.

At Apio, we believe in a seamless process of merging your practice with ours when the time comes for you to start planning your succession or when you decide upon an exit strategy from the industry. If your main concern is to have your long-standing relationships with your clients looked after then we would like to be considered as the group which could do just that.

We have structured a bullet-proof succession model where the retiring advisor is able to hand over the relationships they have built up at their own pace and to a new advisor who is best suited to a certain type of client. This enables the retiring advisor to continue earning their usual income pre-handover and allows for their income stream to increase in value post-handover due to a range of additional value-added benefits which may or may not have been available before merging their practice with our firm.

A value-added benefit for Financial Advisory Practices is that their clients now have access to exceptional short-term insurance account managers who specialise in either Personal Lines or Commercial Lines. This allows one to ring-fence their client base from a short-term insurance point of view and unlock additional revenue streams to the retiring advisor due to our commission sharing arrangements within our Group.

A value-added benefit for Short-Term Brokers is that their client base now has exposure to top wealth managers who are able to ring-fence their clients’ Financial Planning, Investment Management, Wealth Management and Fiduciary Planning needs.

During this handover process, the client becomes comfortable with their new home and the advice process which is followed. This advice process is also tweaked to the previous advisors’ practice to ensure clients respond well to the minor changes if any.

We value our independent and entrepreneurial approach. We are in the business of connecting people with people and place a high value on maintaining open and honest relationships with our valued clients, employees and stakeholders.

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