Derivatives Accreditation – increasing your worth as an adviser

The aging of baby boomers, growth of SMSFs and recent market fluctuations have created a tremendous need for financial advice. At the same time however, there is considerable competition to deliver it. Brokerage firms, independent advisers, banks, and even accounting firms are all fighting for a share of the wealth management business.

Meanwhile clients have become more demanding. They have access to more information and are better informed than ever before. As a result there is pressure on pricing and the need to have a more customized offering.

Options can help advisers meet these challenges in several ways:

An options strategy provides real customisation

While many products and services are positioned as customised, sophisticated clients recognise that most of the time they are simply being offered a choice of alternatives. But an options strategy is built on a client’s existing portfolio. As a unique plan for that investor alone, it provides the customisation that many wealthy clients seek.

An options strategy moves the discussion from price to value

The most successful financial advisers compete on value. While an adviser’s service and knowledge of his client provides value, it typically takes time for an adviser to demonstrate this to a client. In the client acquisition stage, when an adviser may be offering the same asset allocation, managed funds or SMAs as others, demonstrating value can be more difficult. A proposal from an adviser that includes an options strategy, while the others do not, immediately positions that adviser as offering greater value.

An options strategy builds revenues

Every year the number of clients seeking to reduce their asset management fees increases. Information on fees has become more available, as wealthy clients band together to become more knowledgeable consumers of financial advice. They question what their advisers are doing to earn on-going fees and recognise that some services, such as rebalancing are automated. Implementing options strategies eliminates this discussion and may enable advisers to charge higher fees. For those portfolios managed on a commission basis, options can be a source of additional revenue.

Derivatives Accreditation Scholarship

To help advisers meet accreditation requirements for advising clients on options ASX, together with the Stockbrokers And Financial Advisers Association (SAFAA), are offering ADA 1 and ADA 2  Scholarships.  Scholarships are designed to help advisers expand their knowledge and understanding of derivative products. Each Scholarship is valued up to $400 and covers the full cost of the ADA 1 or ADA 2 enrolment plus a complimentary one hour training session.

As an incentive for ASX Market Participants we are running a competition whereby the participant that has the most candidates complete derivatives accreditation by June 2022 will win a lunch/dinner with ASX and SAFAA for 5 staff members.

Apply for a ASX / SAFAA Scholarship

This article is general information only.