The relationship between financial advisors and licensees has long been one of the most debated—and often misunderstood—structures in the advice industry. Traditionally, licensees have operated as compliance-driven entities, focused on risk mitigation, scale, and control. However, a growing number of emerging models are challenging this paradigm.
The conversation with Conaill Keniry from Cobalt Advisers highlights a fundamental shift in how licensees can operate—moving away from rigid structures and toward advisor-centric ecosystems built on flexibility, culture, and genuine support.
At its core, this discussion is not just about licensees. It is about the evolution of financial advice itself—how advisors work, how businesses scale, and how the industry adapts to changing expectations.
Keniry’s journey into building Cobalt Advisers was not driven by ambition alone, but by frustration.
After entering the industry through AMP Horizons, he quickly identified gaps between what advisors wanted to deliver and what the system allowed them to do. Many advisors felt constrained—unable to implement ideas, adopt new technology, or fully serve clients due to internal restrictions.
These limitations were not always regulatory. Instead, they often stemmed from internal policies, outdated processes, or commercial incentives embedded within licensee structures.
As Keniry explains, advisors frequently encounter “little blocks” that prevent them from running their businesses effectively—whether it’s restrictions on software, processes, or strategic advice.
Over time, these small frustrations compound into larger structural issues, ultimately impacting both advisor satisfaction and client outcomes.
Cobalt’s model flips the traditional approach. Rather than building a system to control advisors, it is designed to support them.
One of the most defining features is its emphasis on advisor autonomy. Advisors are not forced into specific tools, platforms, or rigid processes. Instead, they are given the flexibility to run their businesses in a way that aligns with their strengths and client needs.
This approach is grounded in a simple philosophy: if advisors are capable and client-focused, they should not be constrained unnecessarily.
At the same time, this does not mean abandoning compliance. Instead, Cobalt integrates compliance in a way that is practical and aligned with real-world advice. For example, they not only review whether advice meets regulatory requirements, but also whether it is genuinely good advice for the client.
This dual focus—compliance and quality—represents a more balanced and realistic approach to oversight.
Perhaps the most important differentiator in Cobalt’s model is its approach to culture.
Unlike many licensees that prioritise scale, Cobalt is highly selective about who joins. The primary filter is not revenue or size, but whether the advisor genuinely prioritises client outcomes.
Keniry describes a simple test: would he refer a friend or family member to that advisor? If the answer is no, they are not a fit.
This philosophy shapes the entire network. By maintaining a consistent standard of quality and ethics, the group creates an environment where advisors trust each other, collaborate openly, and share ideas.
Importantly, this also reduces the need for heavy-handed compliance. When the culture is strong, many issues are prevented before they arise.
In an industry often focused on growth metrics, Cobalt takes a different stance.
Rather than aiming to reach a specific number of advisors, the focus is on maintaining quality. Growth is welcomed, but only when it aligns with the group’s culture and values.
This approach challenges the traditional assumption that bigger is better. Instead, it suggests that sustainable growth comes from building strong foundations, not simply increasing headcount.
Keniry is explicit about this: if no new advisors were added, the business would still be successful. Growth is not a necessity—it is a byproduct of delivering value.
One of the most practical innovations discussed is how Cobalt supports advisors at different stages of their careers.
A major challenge in the industry is the transition from employed advisor to self-employed business owner. This leap often involves significant financial risk, making it difficult for many advisors to take the step.
To address this, Cobalt offers hybrid models that combine elements of employment and self-employment. Advisors can operate under a revenue-sharing structure, reducing upfront costs while gradually building their own client base.
Over time, they can transition fully into independent businesses, retaining ownership of their clients.
This approach effectively lowers the barrier to entry, enabling more advisors to build sustainable practices without taking excessive risk.
Another standout element of Cobalt’s model is its focus on advisor networking.
Keniry argues that the most valuable insights for advisors often come from other advisors—not from formal presentations or industry events.
Traditional conferences, while informative, can be inefficient. Advisors may spend hours listening to content when only a small portion is directly relevant.
In contrast, peer-to-peer interaction allows for targeted, practical discussions that address real-world challenges.
This philosophy led to the creation of initiatives like “Advisor Games”—interactive events designed to foster collaboration and connection in a more engaging format.
By creating environments where advisors can share ideas openly, Cobalt enhances both individual and collective growth.
Compliance is often seen as a barrier in financial advice, but Cobalt approaches it differently.
Rather than acting purely as a policing function, compliance is integrated into the advisory process as a support mechanism.
For example, the use of structured checklists, digital workflows, and proactive reviews ensures that advice meets standards without becoming overly burdensome.
Additionally, Cobalt employs creative auditing techniques, such as reverse-engineering transactions from bank accounts, to identify potential issues.
This approach reflects a deeper understanding of how advisors operate in practice, allowing compliance to be both effective and efficient.
A particularly important part of the discussion is the transparency around licensee-advisor relationships.
Keniry highlights how some licensees use contractual mechanisms—such as exit barriers or PI insurance requirements—to retain advisors.
While these practices may be legally justified, they can create friction and limit advisor mobility.
Cobalt addresses this by offering simpler, more transparent arrangements, including fixed fees and shorter-term agreements.
The underlying principle is clear: advisors should stay because they see value, not because they are locked in.
The conversation also touches on one of the industry’s biggest challenges: attracting and retaining new advisors.
Keniry suggests that the current model—where firms invest heavily in training only to lose talent later—is flawed.
Instead, he advocates for a more structured, apprenticeship-style approach. This would align incentives for both employers and trainees, creating clearer pathways into the profession.
Additionally, he highlights the need to differentiate between types of advisors. Not all roles require the same level of expertise, and recognising this could improve both accessibility and efficiency within the industry.
Technology plays a significant role in Cobalt’s model, but it is not imposed from the top down.
Advisors are free to choose their own tools, with the licensee providing guidance rather than mandates.
At the same time, internal systems are designed to streamline processes, reduce manual work, and improve efficiency.
Looking ahead, Keniry acknowledges the growing impact of AI, suggesting that it will fundamentally reshape the industry. However, he emphasises the importance of adopting these technologies thoughtfully, particularly given the regulatory environment.
The Cobalt Advisers model represents a shift toward a more flexible, advisor-centric approach to financial advice.
By prioritising culture, autonomy, and practical support, it challenges traditional assumptions about how licensees should operate.
Rather than focusing on control and scale, it emphasises trust, collaboration, and quality—creating an environment where advisors can thrive.
As the industry continues to evolve, models like this may become increasingly relevant. In a world where advisors are scarce and client expectations are rising, the ability to attract, support, and retain high-quality professionals will be a key differentiator.
Ultimately, the future of financial advice may not be defined by larger institutions, but by those who can adapt, innovate, and put advisors—and their clients—at the centre of everything they do.