Ticket-clipping organisations under fire

Smith was recruited to the role after doing consulting work with the AAA on its corporate structure, which he recommended be kept as an incorporated society rather than adopting a model used by some dealer groups and becoming a registered company.

His task now is to guide the 62-year-old organisation as it looks to increase its membership of about 250, many of whom are former AXA advisers.

He said a big part of broadening its appeal would be coming up with agreements with other large providers similar to what it recently negotiated with AMP; he indicated one or more agreements could be announced in the next few weeks.

The AAA’s business model offers advantages for both providers and advisers because it doesn’t “clip the ticket”, he said.