Auckland-based dealer group, mySolutions, has announced a “significant shift” in the way it will work with advisers in future.
In a release to its 280-strong adviser network last week, mySolutions Group CEO, Kevin Smee, confirmed that with effect from 1 July 2021 mySolutions is switching to a member subscription model in which insurance commissions will now be paid directly to its adviser members.
Under this new arrangement, the dealer group will apply what it refers to as a nominal fee of $50 per month, for which it says members will retain access to its group benefits, ongoing business development training sessions and basic member services.
It argues the many areas where the group brings “scale” into the equation for the benefit of its members includes negotiation of terms with product suppliers and obtaining bulk buying opportunities which reduce costs for members.
For members who take advantage of the bulk buying deals, the firm argues their membership cost is quickly offset, effectively providing zero cost membership in real terms.
Commission ‘Pay Rise’
Expanding on the new arrangement, Smee told mySolutions members, “We have a very straightforward and commercial proposition for our existing 280 or so members: do the benefits of belonging outweigh the cost?”
Smee argues a $50/month fee is no barrier, because he says members will generally be many thousands of dollars per year better off through accessing the group’s buying power, “…and that’s before we factor in the pay rises they are pretty much all getting from the insurers.”
In the statement to its members, the dealer group notes it has been working on this development over the last 18 months and has previously signaled strongly to its stakeholders that it would be doing things very differently, advising over a year ago that it would not become a FAP or even an FSP. It stresses its main reason for existence is “…to assist independent advice businesses to grow in scale and value.”
“Adviser business development that gets real commercial results is our reason for being,” said Smee, who added the group is unique in that it is led by advisers, for advisers:
“The one thing we all have in common is that we are all running and building our own advisory firms – and we’ve got a lot of experience and the runs on the board to show that we know how to grow successful practices.”
[mySolutions] will …leave all the market noise stuff to other better placed service providers
The CEO said his group will stick to running and building the value of advisory firms, but notes it will “…leave all the market noise stuff to other better placed service providers.” He says mySolutions just wants to make sure its members have the funding to pay for the various requirements around areas including:
- Mortgage aggregation
- CRM systems
- Compliance requirements
In creating an offer intended to allow advice businesses to be free to determine which choice of structure will best suit their business model, Smee reflected that for advisers who want this choice, they won’t be concerned with a basic membership fee, especially when they will be receiving 100% of the earnings they generate.