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Taking the reins: The burgeoning trend of micro-AFSLs

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17 October 2023 by Rhea Nath, Money Management

Article link: https://www.moneymanagement.com.au/features/taking-reins-burgeoning-trend-micro-afsls

As the advice landscape continues to shift and evolve, there’s been a noticeable trend among profitable practices to seek control of how they run their business by becoming responsible for their own licence, creating a burgeoning group of “micro-AFSLs”.

Adviser Ratings found small licensee groups of one to 10 advisers have seen a 17 per cent rise since 2018, with advisers preferring self-licensing over mid-tier licensees and dealer groups. This has been attributed to banks leaving the industry and large licensees, such as AMP and Insignia, cutting their numbers as well as broader trends around the Future of Financial Advice (FOFA) reforms and the Hayne royal commission.

The benefits of self-licensing, Adviser Ratings said, include the flexible business models as well as the ability to have a more diverse offering with each licensee potentially specialising or having a unique value proposition they can mould, and focusing on niche markets or specific client segments that larger licensees might overlook. 


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