Australian private wealth advisers are switching AFSL providers at a faster rate than at any point in the past decade*. Regulatory reform, evolving client expectations, and a growing desire for more autonomy are prompting experienced advisers to ask a question that once seemed out of reach: what would it look like to run my business on my own terms?
If you’re a financial adviser or private wealth professional who has been wondering whether there’s a better licensing arrangement available to you, this article is for you.
Why Advisers Are Reconsidering Their AFSL Arrangements
The relationship between an adviser and their AFSL holder – whether that’s a large dealer group, a bank-aligned licensee, or a product-heavy institution – has traditionally been one of considerable dependency. The AFSL holder provides the licence, compliance infrastructure, and sometimes a captive client base. In return, advisers often accept restrictive product shelf, revenue sharing arrangements, and limited control over how they run their practice.
For many high-quality advisers, this trade-off made sense early in their careers. But as those advisers have built their own client relationships, developed their investment philosophy, and grown their books, the arrangement starts to feel limiting.
Common frustrations we hear from advisers include:
- Lack of freedom to choose products and platforms that genuinely suit their clients, rather than those preferred by the licensee
- Revenue arrangements that favour the dealer group over the adviser’s business
- Compliance that feels punitive rather than supportive – designed to protect the institution, not the client
- No ownership of client relationships in contractual terms, leaving advisers vulnerable if they ever want to move
- Mandatory meetings, reporting obligations, and cultural fit requirements that don’t reflect how they want to work
The DBFO (Delivering Better Financial Outcomes) reforms currently working through Parliament are also prompting a structural rethink. As the obligations and costs of holding an AFSL evolve, many advisers are weighing up whether their current arrangement is sustainable – and whether a better alternative exists.
Understanding Your Options: CAR vs Self-Licensed
When an adviser decides to explore alternatives to their current dealer group, there are broadly two paths:
1. Becoming a Corporate Authorised Representative (CAR) under a different AFSL
Rather than obtaining your own AFSL (which requires capital, regulatory engagement with ASIC, and ongoing compliance overhead), you operate as a CAR under the licence of a specialist AFSL holder. This gives you autonomy in how you run your business, while the AFSL holder provides the licensing framework, compliance support, and infrastructure you need to operate.
The key is choosing the right AFSL partner – one whose model genuinely supports advisers rather than replicating the constraints of a traditional dealer group.
2. Obtaining your own AFSL
This is the path to full self-licensing. It offers maximum flexibility but comes with significant obligations: ASIC application, responsible manager requirements, capital adequacy, PI insurance, ongoing compliance obligations, and substantial ongoing costs. For most boutique private wealth practices, the cost-benefit calculation doesn’t stack up – particularly when a well-structured CAR arrangement can deliver most of the practical benefits at a fraction of the cost and complexity.
What to Look for in an AFSL Partner
Not all AFSL sponsors are created equal. If you’re evaluating a move, here are the questions worth asking:
Do you own your clients? This is non-negotiable. Any AFSL arrangement worth considering should explicitly confirm in writing that client relationships belong to your business, not the licensee. Without this, you’re rebuilding the same dependency you’re trying to escape.
What platforms and products can you access? A genuine arrangement should give you broad access to the market – not a curated list of preferred providers. Ask specifically whether there are any restrictions, incentives, or volume requirements tied to particular platforms or products.
What does compliance actually look like day-to-day? There’s a meaningful difference between compliance designed to protect the institution and compliance designed to protect clients and support good advice. Ask for specifics about the compliance process, turnaround times for SOA reviews, and how breach notifications are handled.
How is the grid structured? Brokerage and revenue arrangements vary significantly. In a corporate structure with competitive grids, the economics can look very different to what you’re currently on.
What technology and operations support is included? Running a private wealth practice efficiently requires good technology. Ask what’s included in the arrangement: trading platform, portfolio administration, managed accounts capability, reporting, and onboarding tools.
Can you work the way you want to work? Some licensees still require physical presence, mandatory meetings, or specific workflow tools. If flexibility matters to you – whether that’s working remotely, structuring your week around clients, or building a lean team – confirm this upfront.
The Openmarkets Private Wealth CAR Model
Openmarkets is an ASX, Cboe Australia, and NSX market participant holding AFSL no. 246705. We provide AFSL licensing, technology, and operational services for private wealth advisers who want to run their own business – without rebuilding the constraints of a traditional dealer group.
Our model is built around a simple philosophy: advisers know their clients best, and should have the freedom to choose the business model, services, and technology that allow them to operate efficiently, effectively, and in full compliance.
In practice, this means:
- Highly competitive brokerage grids in a corporate structure
- Flexible pricing models that can accommodate both transactional and portfolio-based business
- Platform choice – access to a range of leading platforms and solutions; choose what best suits your clients, not a mandated one
- Your clients are your clients – this is explicit in our contractual arrangements
- Flexible working arrangements – no mandatory meetings, work from home or from one of our offices in Sydney, Melbourne, Brisbane, Adelaide, or Perth
- Full suite of technology and services – trading terminal, managed accounts (MDA), portfolio administration services (PAS), wealth management SaaS
Learn more about Openmarkets’ offering here.
Advisers currently operating under the Openmarkets AFSL include boutique private wealth practices across Australia. Here’s what two of them have said:
“Openmarkets gives me the ability to offer differentiated quality financial advice, free from perverse incentive structures, within a well-defined regulatory framework. They offer a comprehensive solution which includes an AFSL licence, operations, compliance, Managed Discretionary Account (MDA) and clearing.” – Daniel Lalabalavu, Senior Financial Adviser & Portfolio Manager, Arima Investment Partners
“Openmarkets have given me the opportunity to essentially run my own business and utilise all the technological benefits that simply weren’t available 20 years ago. This makes it easier and more efficient to operate, allowing me to dedicate more time to clients and the management of their portfolios. They provide me with the stability and freedom to focus on what truly matters – delivering personalised service, informed advice, and strong long-term outcomes.” – Matthew Cahill, Managing Director, Cahill Private Clients
Is It the Right Time to Make a Move?
The right time to evaluate a licensing change is rarely when things are going well with your current arrangement – it’s usually when a specific frustration has reached a tipping point, or when you’ve had a conversation with another adviser who made the move and found it more straightforward than expected.
A few signs it may be worth having a confidential conversation:
- You’ve built a client book that would sustain your practice
- You’re consistently frustrated by having to use mandated products or platforms
- The revenue arrangement feels weighted toward the dealer group rather than your business
- You want greater control over how you manage client portfolios, including through MDAs
- You’re thinking about the medium-term future of your practice and want genuine ownership
The process of moving is manageable. With the right AFSL partner, the transition – including ASIC notification, client communication, and operational setup – can be handled in a structured and compliant way.
Next Steps
If you’re at the stage of researching your options, the most valuable thing you can do is have a confidential conversation with someone who has done it before – and with an AFSL sponsor who can give you an honest picture of what the arrangement involves.
There are no obligations, and conversations are completely confidential.
Get in touch with the Openmarkets Private Wealth team →
*Source: Financial Adviser Market Insights July 3, 2025 – Padua Wealth Data
Openmarkets Australia Limited (ABN 38 090 472 012, AFSL 246705) is a Market Participant of ASX, Cboe Australia and NSX, and an ASX Clear and Settlement Participant. This article is general information only and does not constitute financial, legal, or compliance advice. Advisers should seek advice before making decisions about their licensing arrangements.