FSC launches locum agreement guide for financial advisers
The Financial Services Council (FSC) is keen to change all that. It has just released a comprehensive, step-by-step guide on how financial advice providers (FAPs) can set up locum arrangements if, for some reason, a key player in their business is taken out of action by an accident, illness or for some other reason cannot work.
Locum Financial Advice Arrangements – A Guide for Financial Advice Providers is the result of a six- month collaborative effort, led by Mark Banicevich, co-chair of the FSC’s Professional Advice Committee and the head of industry engagement at Partners Life.
Banicevich urges FAPs to think carefully about who would service their clients and whether their businesses would even survive if a key person suddenly became unavailable. “How can you protect your business from this sort of unexpected risk?” he asks.
“Is there anyone in your business without whom the business would struggle? And if you have that key person, what is your mitigation strategy if [he or she] is suddenly not available?”
The situation is particularly challenging for businesses with a sole adviser who is also the sole director and sole shareholder. Or for a two-adviser business where, for example, one might be an insurance specialist and the other advises on mortgages, meaning their roles are not readily interchangeable.
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