If you have ever played the popular game Risk you will know it's a strategy board game of diplomacy, conflict and conquest.

It has simple rules, but complex interactions.

To me that sounds just like what's happening with the various dealer groups across the financial advice market right now.

In the past week rumours started swirling around the market that one of the bigger groups was about to takeover/merge/acquire one of the mid-size groups.

The deal hasn't been done yet, so we have chosen not to name the parties out of respect to them so they can finalise their discussions. (One is probably playing it's own internal Risk game amongst stakeholders as it inches to a decision).

Meanwhile, Newpark is regrouping its army, but how big it will be after Partners Life new FAPO model where override commission is paid to FAPs is unknown.

Good Returns understands that Newpark will be announcing its new model around August 23. If Covid-19 hadn't rolled its dice and pushed licensing back a year it's questionable if the group would still be on the board.

Last year we reported that Planet Group had decided to stop playing the game, and it looks likely to be joined one of the newer-co-operative groups which looked to provide answers to members a while back.

We're bound to see more dealer group battles in the lead up to the new regulatory regime. And it's bound to leave many advisers looking for a new home if previous deals are any benchmarks.

One of the more recent one was when Mortgage Supply decided to join up with new-comer Astute. Many of the advisers with Mortgage Supply, and particularly its non-branded group, NZMA, choose to find new homes.

For advisers there is a growing imperative to ensure they find a group that fits with their own beliefs and business practices.

For dealer groups the pressure is coming on to deliver appropriate services to their members at the right price points.

Again, not naming names, but one mortgage group went to the market with a low price offer - 3% of commissions - however we understand that has ramped up to 10% of the commission plus GST (even though commission is zero rated). That pricing is the same as a franchise model like Loan Market. But under the franchise there are a huge range of added services starting at brand and working through to many other support services.

How a non-branded group can charge that sort of pricing is indeed an interesting question.

Expect many more twists and turns in dealer group land.