“Succession Issue to Solve” – Kepa 


According to the head of one of the country’s largest advice groups, the combination of ageing advisers and impending regulatory change may be a catalyst for succession planning.

Kepa CEO, Brendon Neal

Kepa CEO, Brendon Neal, says he expects the impacts of the Financial Services Legislation Amendment Bill may see advisers seek retirement earlier than intended, especially for those already nearing retirement age.

“It’s more to do with the appetite to make substantive changes if you only have a two to five year horizon left in the business anyway,” said Neal.

He said Kepa’s member base consists of a third aged 55+ years with a reasonable proportion also in their 60s.

But succession planning is not something that seems to be prioritised amongst advisers (see: Lack of Succession Plans…).

“We do have a succession issue to try and cater to, how big that is is to be determined yet,” said Neal.

Kepa recently announced a strategic alliance with adviser firm Lloyds Insurance (see: Kepa Announces Third Strategic Alliance…) to offer support during a gradual handover of the advice business.

Mike Lloyd, Lloyd’s Insurance

Commenting on the alliance, Mike Lloyd of Lloyd’s Insurance said, “Regulatory changes are not my driving force, they just happen to be occurring at the same time”.

Kepa’s Neal said they have had interest from advisers in this type of bespoke partnership tailored to the adviser’s needs and thinks they will see more over time.

“We’re just trying to create a vehicle to have that handover occur – we can help advisers release a bit of equity, create the lifestyle they want in terms of a slow-down but we want to facilitate members and new advice into those businesses so they can transition.”

For people who want to acquire an advice business, typically some value is lost when the originating adviser moves on, Neal explained, whereas a gradual transitional handover can have value for everyone as the adviser takes a back step and is able to hand relationships over and bring in and train new advisers over time.