Guardian Advice EM Simon Harris says the group will recruit more advisers in the medium term – but they must fit in culturally.

“One of the key factors for advisers joining Guardian is cultural alignment and a passion for doing the right thing for clients,” he told insuranceNEWS.com.au. “We won’t compromise.”

Mr Harris says new recruits must see life insurance as a key component of any financial plan, but he accepts some have only just adopted the idea.

“If an adviser has recently switched to selling life insurance to generate some income we accept that, because at least it means the client is being covered,” he said.

“But we find after they have dealt with a claim and can see what a difference life insurance makes they soon see the real reason for including it in a plan.”

Mr Harris says the group attracts advisers at industry events and through associations.

“We do have a pull strategy, as we articulate the value of joining the group,” he said. “We talk to them and they know how to contact us but if at the first conversation they don’t have the cultural fit, then we don’t pursue the discussion.”

He says the fight for advisers is very active, which may be bad for the industry.

“Unfortunately, the current war for advisers has created a distorted marketplace among the big end of town,” Mr Harris said. “We’re consistently hearing about large sign-on fees being paid by certain segments of the advice industry, which are not in the best interests of a long-term sustainable advice industry.”  

He says market conditions may give Guardian “a number of opportunities to acquire smaller dealer groups struggling with the increased costs of regulatory change”.