Two-year-old dealer group AvalonFS introduced a new risk management monitoring system at the start of 2015 with the aim of boosting compliance across the group.“The system is used in order to more accurately monitor adviser actions throughout the quarter, as it requests the adviser to fill in certain confirmations and attach certain documentation,” AvalonFS chief executive Neal Hornsby told financialobserver.“[Therefore] not only are we compliant-centric, we are also more able to customise ourselves to the adviser via the system.
“Where other advisers are forced down a certain path of compliance, we can tailor and have something that actually works for them and their situation.”
The non-aligned dealer group had 16 advisers and was set to take on another five by the end of January.
“By the end of the financial year we should have somewhere around 25 advisers,” Hornsby said.
When questioned about adviser targets, he said the group was more interested in quality than numbers.
However, he said ideally 50 advisers would operate under the dealer group in the next two years.
“When we reach that we may take on more and perhaps reassess our model.”
He added the Future of Financial Advice (FOFA) regulatory reforms had benefited the group, enabling AvalonFS to attract better quality advisers.
“FOFA was actually really good for us because it meant that the advisers who [initially] came through were not interested in bringing their grandfathered ongoing commissions,” he said.
“It kind of hit us hard to start with, [however] we then progressed to the idea that this was an opportunity to get a better quality adviser.”
He said there was now a more robust focus on new business, based on advisers being able to comply under their own terms as long as they met certain criteria.
Hornsby said AvalonFS collectively held around 5000 to 7000 clients.