Advisers up for $1m carrot

By MARK FRYER

Financial services company Sovereign is offering financial advisers a compelling reason to sell its wares - a $1 million prize.

The firm is running the promotion until next June to encourage sales of its insurance, investments and home loans.

Advisers who reach a minimum sales target will go into the prize draw, and the more business they do with Sovereign, the more chances they have of winning.

The prize, along with several smaller prizes, will be on top of commissions.

Reward schemes are common in the financial services business, though they typically take the form of free travel, often thinly disguised as conferences or seminars.

"Along came September 11 and nobody wanted to go anywhere," said Sovereign spokesman David Drillien.

"We had one trip that was about to take off to Egypt and a couple that were planned to go to Bali and everybody started saying, 'I don't really want to go on this'."

That reaction, and a feeling that free trips were old hat, persuaded Sovereign to offer prizes to advisers.

"A million grabs a lot of headlines because it's a big number but in the whole scheme of thing it's no more than we'd probably give away anyway on those promotional trips and it's no more than any other company is giving away," said Mr Drillien.

"Top advisers would probably earn getting up towards that kind of money anyway."

Sovereign will also give $100,000 to be split among five charities chosen by advisers.

Financial advisers are not obliged to reveal such rewards to clients but, if asked, they must disclose any remuneration or any other interest "reasonably likely to influence the adviser in giving the advice."