In the last part of 2018 I was approached by a new brokerage, after many discussions and the thousands of questions for who would become my new General Manager, Lee Davidson. I left my old brokerage and joined Finance House Group or FHG.
Even before the Royal Commission was handed down, the proposal made sense to me. What FHG does is partner with accounting firms. Accountants are probably one of the last trusted advisers and a partnership with an accountant means that I am able to be in front of more clients who need help.
In the last few years there have been many discussions around diversification, being able to offer more than what was just one piece of advice, and many accounting firms have started to do this and offer in house financial planning as well as brokerage services.
Those accounting firms that have set up their financial planning business know all too well how much work, compliance and time go into doing this. What FHG offers is the ability to enter into a joint venture with the brokerage, who then takes care of ALL the compliance, auditing and reporting. It allows the accounting firm to maintain their relationship with their client assisting in the structuring of the finance required. By having the broker close at hand, the firm can keep an eye on things like the covenants applied to any commercial loan. As the broker who writes the loan, I work closely to review these covenants and make sure whether they are appropriate or even necessary. Putting the clients’ interests and their business’ ability to perform first.
The partnership also means that the accounting firm has a new income stream, the partnership means that a portion of the upfront commission, earn't by me is then given to the firm. The firm is also given a slice of the trailing commission, though this is very likely to change if Mr Hayne has his way…
ALL commissions and how they are split are always disclosed to the client, I have always found this disclosure to be liberating as the client knows upfront how much will be paid, there are never any secrets here.
The Partnership with the accounting firm is by way of a unit trust. FHG hold the majority share and the accounting firm hold a smaller share. Making the agreement compliant with the CPA bylaws around the rules of referring clients to other parties and a need for independence. The agreement can also be terminated at any time. Placing all control of the JV in the hands of the firm in their best interests.
As a broker I don't know everything, I am always learning. If there is something I don’t know how to do, I find the solution and learn how to do it. I truly believe that there is always a solution to a problem. As a broker who would be your partner, I am adaptable and client focused as it’s the clients interest that I am working for. My partnership with FHG, working to assist your firm, and in turn your clients means that I have the backup from a large group that helps over 200 accounting firms. We have support in our back end from a first meeting right through till after settlement. It also means that if anything ever happened to me that FHG will be there for you and there should never be the case of a dropped ball.
I’d love to discuss how I can help you, your firm and your clients.
Justin Cornock
Commentaires