Recent Newspaper and Finance Magazine articles suggest that banks have not changed their lending criteria. This is questionable when they are knocking back a lot more loans than previously. This year Radar Results will help around 40 clients with their finance applications to acquire a financial planning business. Matt Taylor, Radar’s Melbourne Manager, feels that bank lending practices have changed. “They [the banks] have dramatically changed to a point where they are snubbing property when offered as security. I can’t believe that an adviser putting up his home, his FP business plus the one he wants to buy, is still declined.” Institutions say that while there are enough assets, the cash flow’s not there. Right or wrong, this is a huge change in appetite from only 12 months ago and is certainly not helping the financial planning industry. The banks have a legal obligation to notify their lenders when they breach a covenant or loan condition. Radar is seeing more and more breach notices being issued with some practices having to be sold, or partly sold to repay a portion of their loan. To have your planning business valued just go to the Valuation Questionnaire Page.
Introducing our New Associate – Narelle Burke
Narelle brings with her fifteen years of funds management, platform, practice management and financial planning experience.
Narelle’s previous roles have included four and a half years with HSBC Asset Management as their State Manager – Queensland, Business Development Manager roles with Great Southern Securities and Norwich Union (Now AVIVA) and administration roles within AMP in both their Head Office in Sydney and their regional office in Toowong in Brisbane.
Narelle’s most recent role has been working as the Business Development Manager in her husband’s financial planning office where they operate under their own dealers licence. As an authorised representative she has also been providing Financial Planning advice and ongoing education to clients of the practice.
Having worked closely with financial planners and accountants throughout Queensland for most of her working life, Narelle has had first hand experience assisting in the transition of businesses; before, after and during acquisition.
To contact Narelle Burke please call 07 3391 2490 – Mobile 0400 020 907 or email firstname.lastname@example.org
6,000 Planners to go ; down to 10,000?
There has always been debate on how many financial planners we actually have here in Australia. Some say it reached 25,000 during the 1980’s. When minimum educational requirements were introduced, it halved. Choice Magazine recently claimed we have 16,000 planners – but how many are actually practicing. Choice also claimed that the number of planners in Australia could fall to as low as 10,000 due to the poor economic times. If you are leaving the planning industry as an employee and would like to acquire a FP business or book of clients, please go to the Buying a Financial Planning Business Page.