Industry Fund Services offers IFAs licensing opportunity
Industry funds-backed Industry Funds Services (IFS) is offering 20 independent financial advisers (IFAs) the opportunity to be the first to participate in a licensing arrangement providing them access to industry fund members.
And one of the prerequisites is that the IFAs must be members of the Financial Advice Association of Australia.
Flagging the opportunity as “unique and highly sought after” IFS has said that to participate IFA’s will need to meet strict requirements including passing a technical test and being subject to stringent compliance and employment background checks.
It said that, initially at least, it is offering the opportunity to only 20 financial advisers with the goal of commencing licensing services from 1 July.
The licensing solution on offer from IFS includes AFSL authorisation, risk and compliance support, professional development and training, paraplanning support and analytics and reporting.
The IFS announcement has outlined the strict requirements as being as follows:
- You must pass the IFS technical test
- Meet stringent compliance and employment background checks
- Agree to work to IFS Licensee Standards and business model rules covering education standards, approved products and advice disclosure
- Mandatory to use IFS advice technology and follow the IFS advice process
- No ongoing advice fees, fixed fee review fees are permitted
- Must be a member of the Financial Advice Association Australia (FAAA)
- Commit to participate in ongoing IFS monitoring and supervision program
The IFS material said that its licensing solution for IFAs helps them:
- Deliver advice efficiently which aligns with members’ priorities and fund expectations, helping you run a profitable practice
- Operate under a trusted AFSL framework with strong compliance support
- Meet Trustee Requirements including quality vetting, advice fee payment requests and access to adviser portals
- Access training and tools providing you with a complete advice production platform tailored to industry super advice
- Benefit from referral opportunities through partnerships with leading super funds, with the option of having IFS provide an appointment booking service
With the 50% of Advisers left struggling to keep up with demand. That is only going to keep growing.
I’m sure it will be a stampeded to go work for the ISF dark side.
And what happens if a ISF member couple wanted to use a SMSF to buy a commercial property for their business to rent back = adviser execution, ISF use the dark lords choking powers.
Do strict requirements also include how much fum you’ll be “asked” to bring in?
The skeptic in me says they are doing this to stem outflows.
100% reasonable to think this – why are they doing it now?
If they wanted partners, they’ve had years and years to offer it. Funny it coincides with outflows, isn’t it?
Personally, I wouldn’t touch an offer like this with a 5,000- foot pole.
In my opinion – isn’t VI advice supposed to be dead or dying, not resurrected?
Is this some sort of joke?
Advice provision opportunity, but on their terms.
Yuck.
This does not seem like an appealing “opportunity” at all.
if you are dictated to by a licensee on the products you can advise on, are you still considered “Independent”????
I agree with you.
It really depends upon the APL, but if the APL allows “Independent/unaligned” options, then this service is going to last only as long as it takes for them to realise they’re losing larger balance clients.