More advisers to weigh up licensing options



Financial advisers will be moving into licensing arrangements of firms that use an objective based advice route in 2017, Fitzpatricks Private Wealth believes.
The fee-based advice firm's chief executive, John McMurdo, said the market was currently saturated with the views of commentators seeking to analyse an inflection point facing the various underlying business models within Australia's licensee brands.
"We can say with great certainty that a significant number of advisers are indeed weighing up their options, just as the institutionally-owned groups have begun making major decisions regarding their future operating models," McMurdo said.
He noted that a combination of culture and values centred firmly on client principles had seen over 150 expressions of interest made by external adviser businesses to Fitzpatricks last financial year.
"That is in itself an interesting number. But perhaps more telling from our experience is a consistent desire by those advisers to align with licensee groups that offer the opportunity to more deeply explore the opportunities of the objective-based advice route," he said.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.