Yes, you are free to brand you business as you desire. However, to meet regulatory requirements you will need to identify your relationship with Shartru Wealth Management. Ask us. We’ll show you how.
Shartru Wealth Management charges a fee for the advisers that access our services. We believe this more closely represents what we are trying to achieve in providing a ‘cost sharing arrangement’ between the advisers in our network.
Shartru does provide additional ‘on-demand’ services which come at additional cost and which Shartru Wealth Management has a financial interest in. Examples include Loan/Finance Service, Insurance Service, Property Advocacy, Accounting and SMSF service, and the Managed Discretionary Account.
This is the biggest concern we had with rolling out the AFSL and we spent a lot of time learning from other AFSL’s experiences to put together a play book that will minimise the chance of repeating the same mistakes.
The first rule in extending our AFSL cover to an adviser, is that they must be a cultural fit. This encapsulates a whole range of things but if there is any discrepancy with this aspect we will decline to commence a relationship as the underlying values of the advisers need to be the same as us for the relationship to work. We have no interest in becoming the biggest, we just want to be the best we can for those whose advice model fits ours.
We have policies and procedures in place that provides our advisers with clear guidelines on what advice they can give without having to raise the issue with compliance. Compliance is based on law and we apply a common-sense approach from the clients’ perspective. If there is a reason the adviser wants to go outside these guidelines, this will be referred to Compliance who will work with the adviser to ensure the appropriate matters are addressed in the provision of that advice. Guidelines include areas such as gearing and margin lending, direct property, portfolio composition and Self Managed Superannuation.
Our Investment Committee is highly qualified and experienced, and is in charge of the APL which includes direct equities, direct bonds and range of managed funds. We have in place a documented process for the APL, and advisers can request for a product’s inclusion. The investment Committee however takes the view that an APL must be continually reviewed so we therefore wish to maintain a narrower APL rather than a broader one. When new investments are requested for inclusion we will compare factors such as cost and styles with other alternatives in the market. The idea is we will have a ‘best of breed’ APL.
At Shartru, we innovate with purpose, constantly seeking to identify new paths to assist our investors. In one such example, we pioneered fractional property investment in Australia for our investors.
We have a negative view generally of tax-effective investments and are wary of certain structured products. For such products to make our APL, they would need to be very compelling offer and there will be guidelines built around how they will be applied to clients.
We will conduct a field audit every 12 months for each adviser. Furthermore, we will conduct a remote audit periodically on a recently completed piece of advice.
Shartru Wealth Management is not attached to any institution.
We are product provider indifferent and will assess each product on its merits and compare it to the universe that it operates in. When it comes to the administration of wrap accounts and superannuation products, we have no reason to decline an adviser from using any ‘known’ provider. While we acknowledge there are benefits of having scale with a few, we will leave this decision primarily to the adviser.
We have in place a Managed Discretionary Account that charges a performance fee rather than a high base fee to align our interests with our advisers and their clients.
We allow you to charge any mechanism allowed under the applicable law.
We don’t believe in reinventing the wheel, so the bulk of training will be done through Kaplan Online. The Compliance team will work with the adviser to prepare a Training Plan to ensure the appropriate subjects are targeted.
Should we see a need to do further training on a matter that we are seeing through audits or a changing environment, we will conduct a webinar.
Shartru Wealth Management has built the back-office systems around XPlan. Besides acting as the Customer Relationship Model (CRM), it also is the system for commissions (important for FDS and Opt In) and automation of documents such as SOA etc. The base cost of Xplan for one adviser is included in your license fees. The ability to access other systems other than XPlan is not possible as Shartru Wealth Management has an obligation under a recent ASIC Class order to have full access to all relevant documentation.
Shartru can assist with the transfer of any documentation from another software provider to XPlan.