As a self-licensed business, the introduction of FoFA has presented you with an unprecedented amount of change. Not only have you had to interpret regulatory changes, but also drive the practical implementation of these. All of which has been juggled with managing the day to day activities to drive a profitable and sustainable business.
Obtaining your own Australian Financial Services Licence (AFSL) can be an attractive proposition for businesses that want to have 100% control over the financial services they provide. This includes the strategic direction of your licensee and the way you run your business. You are also responsible for managing your licensee obligations and compliance culture within your business, which in turn has a direct impact on the reputation and sustainability of your licence.
The businesses that are and will continue to thrive are those that have used FoFA as a platform for growth and reinforcing the value they create for their clients. They are not necessarily trying to do everything themselves, rather they leverage the resources, skills, capabilities and the knowledge of specialists. They are actively part of and seek input from a community of like-minded businesses and professionals who can share their insights, experiences and best practice. They are true to their vision of maintaining control but also willing and wanting to learn from others. They are not on their own.
Being part of a strong community of like-minded businesses will help to challenge your thinking, share best practice and raise your own standards. If you operate on your own, there are no set benchmarks to measure yourself, whether it is the implementation of FoFA, right through to measuring key business drivers. While being self-licensed gives you a lot of control, it can limit your scope to interact and engage with other similar businesses that may challenge your thinking or reinforce the performance of your business.
Thankfully, you can have your pie and eat it too. Here are four ways you can benefit from your own licence but not be on your own:
1. Leverage resources, skills and knowledge of specialists
2. Be part of and seek input from a like-minded community
3. Share insights, experiences and best practice
4. Challenge your thinking to raise your own standards
Adam McGuren is National Manager, Licensee Select and is responsible for running and continually enhancing the dealer support services offer for businesses that have their own AFSL.
