Increased Revenue Opportunities
For those wishing to provide “retail financial product advice” you must be RG146 / PS146 compliant and have successfully completed the appropriate RG146 / PS146 Training Courses.
Beyond this mandatory compliance requirement, successful completion and RG146 / PS146 accreditation represents the opportunity to access new sources of revenue and increased levels of income.
As an existing adviser or one that is new to the industry, the opportunity to earn income beyond your traditional activity is good.
Previous to attaining your RG146 / PS146 accreditation you may, for example, have only been involved in writing mortgages or selling superannuation.
Now you are able to apply to become an Authorised Representative of an Australian Financial Services License holder (licensee) and for your existing client base, to deliver a broader range of financial service products and earn revenue in the form of upfront and ongoing trailing commissions.
Case study:
A married couple comes to you seeking financial advice. They require a number of solutions.
Having completed the full Diploma in Financial Services (Financial Planning) and being an Authorised Representative of a licensee, you can provide advice and earn DIRECT commission on any of the following.
- Write their life insurance policy of lets say $4,000. You earn as part of your facilitation and write of the policy 100% of the 1st years premium of $4,000 AND an additional 10%. Total earned in first year of policy $4,400 and 10% per annum trailing commission thereafter.
- The couple also has $75,000 worth of superannuation. For writing this you may earn 1% commission or $750. This is coupled with a trailing commission of between 0.5% - 1.0%, or $375 - $750 per annum.
- To obtain negative gearing tax benefits, they are also considering a small investment property requiring a $200,000 mortgage. You may earn 0.7% or $1,400 upfront commission and an annual trailing commission of additional 0.3% or $600 by recommending this investment strategy.
- Planning for their children's education, the couple would also like to investment $10,000 pa in a managed fund. For writing this you may earn 1% commission or $100. This is coupled with a trailing commission of between 0.5% - 1.0%, or $50 - $100 per annum.
Previously...
In the past you may have had to refer this advice to a financial planner or agent, from which you may have earned between 0%-20% for the referral. In this instance, referral may have earned you $1,310 or 20% of $6,550 for the purposes of this case study.
After becoming RG146 / PS146 compliant...
You are able to write all of the business above (if authorised by your licensee) which may represent up to a 80% increase in revenue per client!
Target your existing client base in this way and see your enterprise grow financially by having the ability to be a one-stop financial product shop.
Like to know more?
For more information on how you can increase your revenue opportunities and becoming RG146 / PS146 compliant, check out our Training Courses or Contact Us or call our Customer Care Centre on 1300 306 146 and speak to a qualified consultant today.
Get yourself closer to ASIC compliance today!
Book a RG146 / PS146 Training Course via our online registration and enrollment section. Payments for the course can be made online right now via credit card.
And because we have courses running in all Australian mainland capital cities every few weeks, you can be assured of getting a place at a time and place convenient to you and your organisation.
