1 Comment 1 Commentby Daniel Dunkley
Jeff Royle
KAN, launched by the team behind Trail CRM earlier this year, has lured two well-known advisers from NZFSG as it builds its presence.
The technology-driven group has taken on advisers including Jeff Royle, of iLender, and Hamish Patel, of Mortgages Online, in recent weeks.
The duo have joined KAN as advisers consider their group membership under the FSLAA regime, and the transition to full licensing.
Royle, a non-bank lending specialist, said his business model "did not really fit with NZFSG", particularly with regard to being able to charge fees when using a lender that also paid commission.
He said: "Most non-bank lenders pay around 30% less than a bank, hence we charge a nominal fee to make up the shortfall."
Royle said other factors influenced his decisions, such as the inability to use off-panel lenders at the G, and the group's "prescriptive personal disclosure statement": "The wording around clawback also gave us concerns," he added.
Royle cited KAN's Trail CRM as a big pull.
"To us, this is a more user friendly CRM, particularly for the customer experience which is paramount in our business. The transition was pretty seamless and so far we have found KAN to be responsive and positive in our dealings."
Patel said his decision was down to his preference of CRM, and his choice to take on his own FAP licence.
"Moving from the shelter of industry gurus like Brian and Bruce of NZFSG is not easy, they have placed the individual adviser business at the forefront, and been innovative in balancing interests of suppliers, the G, and small business," Patel said.
"Trail has been serving up an amazing user interface in terms of software. With less suppliers in some ways they are similar to the infancy of NZFSG. KMM, which some of the old timers will remember, started as the underdog with the best software in class. Trail has been aggressive in support for the advice process while still allowing freedom for a small business like me who is going for full licence," Patel added.
KAN launched in March this year and plans to win more advisers over with its tech-led offering.
Speaking to TMM Online earlier this year, Slogrove said "advisers feel like existing groups in the industry have shown a lack of leadership on the things that really matter". At launch, Slogrove said more than 60 advisers had applied to join the group.
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A dealer Group has to offer more than “banks saying its compulsory to belong to a dealer group” to its members and the question must be asked, do dealer groups even have to be profitable?
What do you need from a dealer group?
Is your dealer groups sole existence to generate money and profit from its members
Is your dealer group owned by overseas interests, real estate groups, or non-arm’s length entities?
Does your dealer groups CEO arrange all group insurance deals like PI covers, Heath packages and group kiwi saver offers through his own business partners brokerage that receives the commission for these deals?
Has your dealer group negotiated the worst commission deal in adviser history with small banks.
Is your dealer group receiving commission from second tier lenders for the privilege of advisers using that lender?
Is your dealer groups cloud based CRM owned by real estate agents based and stored in Australia, and does this CRM favor the groups own branded mortgage advisers over non branded advisers for referrals and Leeds and is any of this being disclosed to the consumer.
What is your dealer group doing for you?