Self-Licensing Case Studies: Results from an Adviser Survey

by | Aug 16, 2024 | Uncategorized | 0 comments

Prepared by Kit Legal with feedback from their wonderful clients.

The Journey to Self-Licensing: What We Learned

Flexibility and Control: The Most Cited Benefits

One of the recurrent themes in the survey responses was the benefits of freedom and control that self-licensing offers. Many advisers expressed that having their own AFSL allowed them to tailor their business practices more closely to their objectives without external influence. One respondent highlighted the ability to “control processes & procedures” and to be “more nimble to make changes.” Another pointed out that self-licensing grants “greater flexibility around investment decisions,” a sentiment echoed by several other respondents.

The autonomy to control their firm’s direction and make decisions in their clients’ best interests, without the constraints imposed by external license holders, was a significant advantage. As one adviser put it, “The freedom to make our own decisions and the flexibility to chart our own course” were key benefits that made the journey worthwhile.

Challenges Along the Way

Despite the numerous benefits, self-licensing is not without its challenges. Compliance was a common concern among respondents, particularly in terms of professional indemnity insurance and the additional responsibilities that come with holding an AFSL. One adviser noted that ” Time. Changing rules, increasing Government compliance and fees” all posed a significant challenge during the transition to self-licensing.

However, even with these challenges, the consensus was that the benefits of self-licensing far outweigh the drawbacks. As one adviser succinctly put it, “The benefits of the flexibility, autonomy, and efficiency outweigh the additional responsibilities. I would have done this much sooner had I known.”.

The Role of Professional Support

While the journey to obtaining an AFSL can be daunting, the importance of professional support cannot be overstated. Many advisers mentioned the crucial role that firms like Kit Legal played in simplifying the process. One respondent remarked, “The experience of obtaining an AFSL was smooth and supported, thanks to Kit Legal. The ongoing support and guidance provide peace of mind that we are exceeding ASIC and industry expectations.”

Specialist outsourced support has been a “game changer” for many, making what could be a stressful process much more manageable. Advisers appreciated having experts available to call on when needed, which has made running their AFSL “a no-brainer.”

A Worthwhile Endeavor

The overall sentiment among those who have obtained their own AFSL is overwhelmingly positive. Many advisers expressed that they wished they had made the move sooner. One respondent stated, ” Before obtaining our own AFSL we were part of a large adviser group. Even though exiting the group had challenges we now feel more empowered to make decision in OUR best interests and those of our clients.”

The decision to begin the journey to self-licensing is indeed a significant one, but with the right support and a clear understanding of the process, it can be a highly rewarding path. As the responses we received highlight, the freedom, control, and ability to directly influence the direction your business takes are powerful motivators for those considering this move. As we have engaged with a growing group of self-licensed advisers, it has become clear that whilst there are challenges, the benefits of autonomy, flexibility, and control make holding your own AFSL an attractive option. With the right support and preparation, the journey can be smoother than expected, leading to a more empowered and successful advisory practice.