Posted April 17, 2020
Posted By Meghann Cannon
Time to make a choice? How to ensure the health of your authorised rep agreement.
Published 5 July, 2019
We know a number of advisers are in the position where their dealer group arrangements are coming to an end. That leaves you in a the place where you have to decide which path to take for the future. There are always options; for those who want complete autonomy over how they run their business, self licensing isn’t as scary or as expensive as you may have thought, read why here. For those looking for a new dealer group the right fit is everything, do your due diligence on culture and values alignment. Make sure you properly read and understand your authorised representative agreement. Key things to look out for is ownership of client relationships and records, termination rights, and any clauses that may slow down or inhibit to your ability to move dealer groups down the track. We are seeing a number of advisers caught out now by onerous termination audit provisions in their contracts and a very slow process to transfer their clients from termination. Of course the licensee needs to manage their risk but we truely believe a balanced approach can be achieved. If decide to get your own licence we would love to hear from you but if you decide to engage with a new dealer group we are also happy to help review your legal agreement. Get in touch if we can help!