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Advice on starting an advice business

Discussion in 'Financial Planning' started by Projectikonz, 27th Aug, 2013.

  1. Projectikonz

    Projectikonz New Member

    Joined:
    27th Aug, 2013
    Posts:
    2
    Location:
    Sydney, NSW
    Like a few people that have posted on this site, I'm looking to start an advice firm.

    As controversial as it sounds, this will be my first role as a financial adviser, though I have been working for a dealer group for 6 years in a sales/practice management function (so I'm not a complete newbie).
    I also have completed all of the relevant studies.

    I'm looking to start the firm with 3 other directors, each of whom owns a business that will be able to provide me with a regular stream of leads.

    I don't really want to go through the headache of getting my own license, so would rather be an auth rep of a larger firm, like Securitor etc.

    • Does anyone here have any examples of this being possible?
    • Anyone have some clear numbers as to how much it would cost to get licensed through a firm like Securitor?
    • What would be the required number of clients in the first year to keep head above water?

    Thanks!
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    It would cost around $15k to $20k pa just to be an authorised rep. You have also fees for insurance, ASIC, tax returns, CPD courses, office etc.

    Not cheap!
     
  3. Projectikonz

    Projectikonz New Member

    Joined:
    27th Aug, 2013
    Posts:
    2
    Location:
    Sydney, NSW
    Thanks for the info!
    Have you gone through the process yourself?
     
  4. Andrew Newman

    Andrew Newman Well-Known Member

    Joined:
    5th Nov, 2008
    Posts:
    175
    Location:
    Melbourne
    Hi Projectikonz

    Which dealer group did you work for and what kind of work did you do?

    I have been running my own financial planning business for 6 years and used to be an Authorised Representative of Securitor but later changed to being an Authorised Representative of Lionsgate. There are many factors to consider and you will need to undertake lots of research.

    Kind Regards
     
  5. Blueeye

    Blueeye Active Member

    Joined:
    26th Aug, 2013
    Posts:
    27
    Location:
    Sydney
    I'm sure you've already started but you'll need to do a heap of research before jumping in. Although I don't have any direct experience, I've got a friend who was thinking about it and ended up throwing it in because it was going to be too risky for the amount of money he was going to have to outlay.

    Good luck.