Axa-owned dealer group Genesys Wealth Advisers (Genesys) has begun rolling out a new program that aims to give the next generation of advisers the assistance they need to become practice owners.
As part of the Discovery program, Genesys will buy clients from existing advisers and sell them on to new entrants within the dealer group over a deferred period of time.
Axa Financial Advice Network head of acquisitions and succession Steven Davison said the program, which was initially launched by Axa in 2003, had helped to recruit 310 advisers to Axa-owned dealer groups Axa Financial Planning and Charter Financial Planning.
He said the Discovery program had helped to deliver $3.7 billion of wealth management sales and $25.8 million of risk sales across the two dealer groups.
"Extending the program to Genesys member firms will enable the dealer group to recruit more aspiring practice owners and increase profitability as well," he said.
"There are a lot of great advisers out there who have good experience and qualifications but who don't have the ability to buy equity, so we want to help them become business owners by assisting them in attaining their own book of clients, which can then translate into equity value."
Genesys chief executive John Saint said Discovery would assist member firms in attracting and retaining advisers by providing a clear and structured path to equity.
Other advantages included improved client segmentation, release of capital for the expansion of a practice, and timely and attractive succession planning options, he said.
According to Axa, a typical Discovery adviser would be around 39 years of age and highly experienced but with limited opportunity to purchase equity in a business.
