We field questions all the time from advisers, so below are some FAQ that may help you decide if we are the right fit for you moving forward.
Do you license everyone?
We get calls every week from advisers looking for someone to license them. Often the first question we get asked is “how much are your fees”. We believe cost should only ever be an issue in the absence of value.
Please read all the FAQs first to help clarify whether you can fit in our dealership; after that, we can discuss your business and the onboarding process.
Do you license advice firms?
Yes. This is what myonlineadvisers has been set up to do.
How long have you been operating as an AFSL?
We were licensed in September 2012 and have been growing our dealership organically since then.
How many Corporate Authorised Representatives do you have?
How many Sub-Authorised Representatives do you have?
31 – a mixture of both general advice and personal advice.
Do you license sole traders?
Our license is set up to authorise a corporate entity and the advisers within that corporate entity. This is reflected in our pricing. The initial dealer fee includes the Corporate Authorised Representative (CAR) and the Sub-Authorised Representative (responsible person) of the CAR. There are then additional fees for each Sub-Authorised Representative under this CAR.
How long does it take to get licensed under myonlineadvisers?
Our process is very responsive. If you can get the required information back to us quickly, we can get on with checking and cross-referencing the information supplied. We make a decision quickly as long as there are no hold ups.
What is required to join myonlineadvisers?
Please click here for our current onboarding requirements.
What can hold up the application and authorisation process?
There are 2 main areas that can hold things up:
- Compliance Reference – As part of the onboarding process, you will supply a signed consent form which we send to your current/previous dealership to allow us to receive a compliance reference. Yes, there is an industry standard for checking the compliance history of an adviser. Licensees can ensure there are no outstanding compliance issues with you or your firm.
- Deed of Release – Once we have finalised our due diligence process, and we both agree we are a good fit for each other, we will issue you with our Corporate Authorised Representative Agreement. Once signed by all parties, both your current dealership and ourselves are required to sign a deed of release which allows for your clients to be transferred to myonlineadvisers so that you can continue to give your clients advice and continue to be paid. Be aware there is a clause which states the release will be subject to a change of licensee notification letter being sent to the clients and a waiting period of 14 or 30 days before clients will be released.
Both of these processes can take some time…usually not from our end but may be from your current licensee. We recommend that you make sure you drive this process as it is often out of our hands.
What is your pricing?
Dealer Fee; Corporate Authorised Representative and the Sub-Authorised Representative responsible person of the CAR; usually the principal adviser
$22,000 p.a. plus GST
Second Sub-Authorised Representative
$16,000 p.a. plus GST
Third and subsequent Sub-Authorised Representatives
$12,000 p.a. plus GST
Professional Indemnity Fee;
Based on the advice firm’s income:
Up to $497,500 p.a.: $4,975 p.a. plus GST
From $497,500 p.a. and above: $4,975 plus 1% plus GST
(Current Excess – $25,000)
What is the dealer / CAR split?
MOA – 0%
CAR – 100%
How often is your pay run?
Any money that has been received in our account by Friday night, is reconciled over Monday, Tuesday, Wednesday of the following week 99% of the time all monies are reconciled and can be paid out on Wednesday evening so should be received in your bank by Thursday or Friday at the latest.
Do your dealer fees increase annually?
Our PI insurance is due on 30 September each year and all CAR agreements are reviewed then.
Currently, PI premiums have stabilised so there haven’t been any significant price rises to our agreements over the last few years. However, there is some industry talk of AFCA (Australian Financial Complaints Authority) changes to claim limits and how they may affect PI premiums, which will affect everyone.
What software do you use?
You are free to use any of your current CRM / Software systems. We do however have a state of the art CRM software and we are working on an SOA builder that will enable advisers to create Best Interest Duty tailored SOAs.
What are your education requirements?
There is no doubt that the industry is going down the “professional” path with all educational requirements being set by FASEA and all monitoring being done by relevant Code of Ethics monitoring bodies and compliance schemes.
All our advisers, both current and future, will need to have an action plan in place so everyone can meet the new education requirements on or before each of the due dates. We are on hand to help with this process.
Do your advisers need to be registered with the Tax Practitioner Board (TPB)?
Advisers who are giving tax advice and incidental tax advice need to be registered with the TPB. For most advisers in the personal advice space, this should not be a problem. If it is, then let us know so that we can work out the best way forward.
What areas of advice are you licensed for?
myonlineadvisers is authorised to carry on a financial services business to provide financial product advice and deal in a financial product (by applying for, acquiring, varying or disposing of a financial product on behalf of another person) on:
- Deposit and payment products;
- Government Debentures, stocks or bonds;
- Life Products;
- Managed Investment Schemes;
- Retirement Savings Accounts;
- Securities; and
- Superannuation (including self-managed superannuation funds)
You will be authorised for the areas in which you have completed the relevant training and qualifications and have relevant experience in.
myonlineadvisers and their authorised representatives are not authorised for Derivatives or Margin Lending.
What does your Approved Product List (APL) look like?
We use Lonsec as our research house.
Our APL is Lonsec “investment grade” and above or it’s equivalent (e.g. Zenith or Morningstar). If an investment is not on this APL, you only need to apply in writing to our investment committee for a specific investment to be added to the investment APL. The committee will review any application, complete its due diligence process and if satisfied, add the investment to the APL.
What Life Insurance companies are on your APL?
All life insurance companies are available for advisers to use.
If you think a specific life company is in your clients best interests, then we are more than happy for you to use them.
We are also one of the initial AFSLs to get distribution approval for both NEOS and MetLife. We are hoping to get a distribution agreement in place with Integrity Life once they are “open for business” which is expected later in 2018.
What is your compliance process?
Monitoring and supervision are the key components of all licensees. We require all advice documentation to be uploaded to our online folder on our secure server so that we have access to all documentation at all times. This enables us to do random audits and for us to cross-reference adviser payments with the documentation you have supplied.
We are also working with several RegTech firms to see how we can use a rules-based compliance checking engine to review all SOAs at time of creation. We are in discussions on the use of AI and machine learning to see how we can add this to a rules-based compliance engine.
In short, compliance is the heart and soul of our dealership and this subject is ever changing and too complex for this FAQ.
We think you get the picture…..you will be monitored and supervised….we are happy to explain more when you are ready to discuss joining MOA.
Where do you operate from?
We operate out of The Capital, 155 Queen Street, Brisbane, however a lot of what we do is virtual so we have people working in different places.
How do you manage CPD points?
We use Caddie, a new CPD startup to manage CPD points. Trust us, it’s heaps better than others. Our advisers like being able to do micro-CPD on the train to work for example.
We don’t do PD days as we prefer to do webinars on specific topics throughout the year.
We also encourage our advisers to attend conferences like the AFA National Conference, FPA Congress, xy adviser events etc.
Our CPD training year starts in October and ends in September in line with our PI and CAR renewals.