Changing Licensee to IIP - FAQ’s
For any advice practice considering a change of licensee, it can be a daunting prospect. There are many options out there – from the large dealer groups like IOOF and Wealth Today, through to smaller self-licenced boutiques with as little as 5 advisers…
When meeting with new advisers, there are some common questions we often cover in our discussions. We will seek to answer some of the common questions to help guide you on your licensee discovery journey….
How is IIP different from other licensees?
Being a small boutique, we pride ourselves on being a pragmatic licensee.
We want you to be able to efficiently deliver high quality advice your clients, but at the same time, it needs to be compliant. For us, compliance isn’t about implementing the regulations to the n’th degree of the law. It’s about providing quality advice to your client, in a practical way.
What is your fee structure?
We charge a flat licensee fee from $20,000 per annum, per adviser.
All other costs such as Xplan, iComply2, ASIC Levy, PI Insurance and Kaplan Ontrack (CPD) is passed through at cost to the practice. Check out our pricing page for full costing details About 4 — IIP Dealer Group
Do I need to do an SOA for every client in the first 12 months?
In short, no. There is no such thing as a ‘Foundation SOA’ - you provide your client with advice, to help guide them in making financial decisions - not to satisfy licensee standards. However, it does depend on who provided the initial advice.
Refer to Point 12 on the link below on ASIC’s guidance for changing licensees:
FAQs: Records of Advice (ROAs) | ASIC
It will depend on whether you were the ‘providing entity’ who gave the previous SOA to your clients while authorised by your old licensee.
Providing entities may be AFS licensees or authorised representatives. Authorised representatives can be individuals or corporate authorised representatives. Representatives, such as employed advisers, that are not authorised representatives are not providing entities.
If you are the providing entity, we would expect you would have a copy of the original advice on file to use an ROA.
How does your adviser monitoring program work?
We pre-vet every SOA before they are approved to be sent to the client. Whilst this may seem a bit conservative to some, we believe it is an essential service in supporting our advisers to not only avoid the risk of breaching, but to also show the value of their advice to their client.
The pre-vet process is managed through iC2 App. Generally, SOA’s are reviewed in 24 – 48 hours.
What is on your APL?
We don’t issue any products, nor do we have any preferred platforms.
Our APL is quite broad, in that we are happy to support advisers to use products and platforms that suit their client's needs. With that being said, there is not a long shopping list of products as our advisers generally use the common Wrap platforms, industry funds and insurers only.
Super funds rated ‘4 Apples’ or higher by Chant West are acceptable. Investment funds rated ‘3 Stars’ or ‘Investment Grade’ or higher are also acceptable.
What software do you use?
We use Xplan for all advice production. We also use iC2 App to manage the AFSL and Revenue. IC2 App also has workflow and online fact find capabilities integrated with Xplan.
What do your advisers say about you?
When obtaining feedback from our advisers, a common theme is that "IIP have proven to be easy to work with, while putting measures in place to help me maintain a high quality of advice.”
“IIP is a licensee that works to facilitate client outcomes through compliance-focused advice tools is a breath of fresh air the industry needs.”
What is the switching process?
The first thing we need to do is arrange a catch up and see if we suit each others business and align to each others business values. You can do that on the button below:
Next we need to get your consent to collect your records. This includes consent to contact your current licensee and obtain an information sharing. Further info available here.
Once we have obtained the necessary info and all background checks have been done, we can discuss next steps. This will depend on your current licensee and any offboarding requirements with your current licencee.
Are there any costs to switch?
We don’t charge an onboarding fee. However, you will need to contact your current licensee to confirm if they charge any fees to leave.
If you are migrating data from your current licensees Xplan site to our IIP Xplan site, Iress will provide a quote to migrate your client data. We will assist in liasing with Xplan and provide any administration support to make a seemless data transfer.