Synchron plans to grow advisers numbers by about 10% a year over the next two years, taking its authorised representative count from 427 to 500 by September 2018.

Based on current numbers, this would make Synchron the second-largest licensee in Australia by life insurance new business, and the fifth-largest by adviser count. 

Director Don Trapnell says it will be hard to reach the 500 target. “This is because, statistically, for every 100 people who make an enquiry about joining Synchron, only half end up meeting our rigorous selection criteria to become authorised representatives,” he said.

“The high rejection rate occurs for a variety of reasons, the main one being that some advisers simply do not meet Synchron’s very stringent compliance standards.”

He says Synchron is increasingly attractive to advisers offering financial planning and super advice.

“In the past we were perceived as a life insurance-focused licensee. However, today 40% of our revenue comes from financial planning and super activities.

“Advisers also seem to be attracted to us because of our size – we are now one of the largest licensees in the country.”

Mr Trapnell says despite his intention to slowly relinquish day-to-day management of Synchron, and a similar decision by fellow director John Prossor, the business will continue operating.

“We recently appointed Michael Jones as Compliance Manager to allow John to start the process of very slowly exiting the business and taking up a role as non-executive director. 

“Within two years I intend to seek a general manager for Synchron, to enable me to do the same.”

Mr Trapnell says this gradual process will help instil the Synchron culture into the new management team. 

“There is no reason in the world why Synchron cannot continue to grow and prosper under that new team, with Mr Prossor and I in the roles of non-executive directors.

“But all in the fullness of time, not in the immediate future.”