Administrator BDO update on AFS’ receivership, the FPA reports back on its recruitment drive and dealer group Securitor provides social media tools for financial advisers looking to expand their community of influence.
AFS Group slides into receivership
Accounting firm BDO has suggested the Australian Financial Services Group (AFS) had little choice but to go into voluntary administration after exhausting other alternatives. Alan Logan (right) replaced Peter Daly as chief executive of the dealer group in September and immediately engaged Seaview Consulting to assist in a detailed strategic review of the struggling business.
It now appears that efforts to sell or break up the business, which consists of four underlying companies – AFS Group Limited, Australian Financial Services Limited, MDA Private Pty Ltd and Strategy Portfolio Limited – were unsuccessful as several planning practices jumped ship. Rachel Burdett-Baker and Luke Targett from BDO have been appointed administrators.
“We understand that in recent times, the AFS has actively been working with advisers with respect to a transfer to alternate licensees, however this process was unable to be finalised due to the withdrawal of existing financial accommodation,” said BDO in a statement.
“The effect of our appointment is to place a moratorium on the payment of unsecured creditors’ accounts in relation to trading and other debts incurred up to the date of our appointment, until creditors make a decision about the AFS’ future.
“We have commenced an assessment of the financial position of the AFS to assess its future viability. We will continue to work with management and major stakeholders and regulators during the voluntary administration process.”
FPA recruitment drive nets 1000 new members
The Financial Planning Association (FPA) has welcomed over 1000 new members in financial year 2012-2013. Female financial planners represent 32 per cent of the new membership, generation X represents 48 per cent and generation Y 40 per cent.
Mark Rantall (right), chief executive of the FPA believes the members represent the new face of financial planning and these demographics highlight a change that is occurring in the profession.
“The FPA community continues to work hard to build initiatives that encourage Australians across all demographics to join this profession. It is important that financial planners are a diverse group so that clients from all walks of life can access a full range of advice,” he said.
“It is positive to see that the female representation in the FPA and more broadly, in financial services, is growing each year. However these numbers are not satisfactory and much needs to be done here to close the gap between the two genders and the FPA is aiming to do that with the financial planning profession. In order for Australians to receive appropriate advice, there needs to be equal representation across genders and all demographics.”
The FPA currently has more than 10,000 members, with over 7500 practicing members. Of its members, almost 50 per cent is made up of generation X, 37 per cent of baby boomers and 10 per cent of generation Y.
Securitor solution to “ad hoc” social media use
Securitor has launched a social media capability for advisers across Twitter, YouTube and LinkedIn, providing advisers with another tool to help engage with clients and communities. Securitor managing director, Matt Englund (right), says the company’s social media strategy has been built with the deliberate goal of bringing its value proposition to life.
“Our business is built on the value of community, connecting a community of like-minded professionals. For Securitor, social media is about cementing our adviser relationships, expanding our community of influence and encouraging transparency by demonstrating the value of advice,” he said.
“I think many advisers have been wondering about social media and wanting to get involved, but have not known how. This has led to an ad hoc approach by both dealer groups and practices.”
Securitor’s social media approach addresses these issues through social media training, which involves webinars and master classes as well as policy and etiquette guides so advisers can implement a social media strategy for their own businesses.