1 in 4 Planners to leave – Radar’s poll results over 700 responses

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After Chris Bowen announced on 26 April 2010 new legislation will be introduced affecting commissions, trails, review fees, volume bonuses and upfront fees, Radar Results conducted a poll. Radar Results polled financial planners and other financial service industry people asking “How will Chris Bowen’s new laws (2012) affect your business plans?”

We received 732 responses with more than half suggesting their business plans would be affected by Chris Bowen’s new reforms with more than 1 in 4 respondents leaving or retiring sooner from the financial planning industry.

Some 12 per cent (87 respondents) said they would retire sooner, 14 per cent (101) said they would sell part or all of their business, and 16 per cent (115) said they would leave the industry. Some 44 per cent (324) would not change their business plans as a result of the reforms

Many suggested it would be positive, allowing them to expand and acquire more practices.

Those polled and said the reform laws would not change their business plans totalled 324, or 44% of the responses.

 

How will Chris Bowen’s new laws (July 2012) affect your business plans?

Number of responses

Response ratio

Retire sooner

87

12%

Sell part or all of your business

101

14%

Expand through acquisition

105

14%

Leave the planning industry

115

16%

No change at all

324

44%

Total

732

100%

Radar Acquire New Division for Accounting Practices

Acquire Logowww.radaracquire.com.au

The group’s operations manager, Michele Conroy, announced a new division will commence this week specialising in the acquisition of accounting practices. The name of the new service will be Radar Acquire.

Conroy said “the demand by Radar’s existing clients to acquire accounting practices has been growing for several years. We see more of our financial planning clients adding accounting practices to their business, and this is a trend that would only continue.”

The group’s managing director, John Birt, has been working with accountants for more than 26 years and he’ll be using his experience to run this new division, Radar Acquire. 

Birt said, “It’s a natural progression of our company (Radar Results) and will complement our existing structure and will be supported by our existing associates nationwide. I see the sale price of accounting firms and financial planning firms overtime moving closer together, particularly with the new fee for service legislation that Chris Bowen wants to introduce.”