How an Adviser Can Choose a Dealer Group

When in the market for a new dealer group to join, you’ll want to make the best decision possible with the lowest probability that you’ll want to switch later. Often, financial advisers decide to switch dealer groups for one of the following reasons:

– The fee structures aren’t competitive or they’re outdated.
– They have complex, rigid structures in place.
– They lack client management systems and processes.
– They lack education, training and compliance support.

While there are likely other reasons why you might be unhappy with your dealer group, these are the most common issues. So, how can you counteract these concerns and choose the best dealer group possible?

Here, we’re going over a few questions to ask yourself to help you choose a dealer group that will work for you over the long term. Let’s get started.

Are their fees competitive with up-to-date?

As with any service, if you’re not getting a solid return on investment, you’ll start to look elsewhere. The same goes for a financial adviser choosing a dealer group.

Make sure you’re working with an organisation that offers the most competitive fees that are up-to-date with the market. Do some research and ensure you’re not being over-charged.

Do they have simple and flexible systems?

Simplicity doesn’t equate to incompetence. In fact, when something is simple and clear, it often is a sign of deep understanding. On the other hand, when systems are overly complicated and rigid, it’s more likely a sign of disorganisation and lack of ability.

When someone has an expert understanding of a topic, they don’t need to make it more opaque. If you can explain something in the simplest terms possible, it means you really have a grasp of it.

So, beware of the dealer group that uses dense jargon and overcomplicated systems that don’t change with the times. Working with a simple, flexible dealer group system is the way to go.

Do they employ proper management systems and processes?

Systems and processes are the keys to efficiency. They’re also the best way to stay consistent and effective. So, if you find a dealer group that doesn’t employ systems and processes, run in the opposite direction.

Strong systems mean doing things the same way every time without wasting time by solving old problems. You can rest assured that a dealer group with proper systems and processes will get the job done without anything unnecessary.

Do they have education, training and compliance support?

In other words, is your dealer group transparent about what they know? Do they offer support in terms of education, training and compliance? Do you know what they’re up to?

Organisations that are happy to share their wealth of knowledge are the organisations you want to be associated with.

No more hoarding or secrecy. Generosity and sharing are the cornerstones of any quality business. So, ensuring these support systems are crucial to choosing a strong dealer group.

Overall, in our estimation, competitive fees, simple and flexible systems, and additional support are the main things to look for when choosing a dealer group.

Looking for more adviser-focused information? Reach out and we’d love to help however we can.