Managed accounts – a post-FOFA revenue-driver
The significant emergence of managed accounts can be attributed in large part to the impacts of the Future of Financial Advice (FOFA) regime particularly on the revenue streams of the licensees, according to Institute of Managed Accounts Professionals chief executive, Toby Potter.
Addressing Money Management’s Fintech Platforms and Wraps Conference on the Gold Coast, Potter pointed to the manner in which the FOFA rules around things such as volume rebates destroying licensee revenue streams had been a driver for the rise of managed accounts.
“Managed accounts have helped recreate a revenue stream for licensees,” he said.
“What we’re seeing is managed accounts becoming a key way for licensees to provide services and a key way to the way in which they [licensees] are being reinvented,” Potter said.
The IMAP chairman acknowledged that he had been an advocate of managed accounts for most of the past two decades but said it had only been in the last three or four years that the growth he had always predicted had actually come about.
He said it was a measure of the importance of managed accounts in the current environment that when BT Financial Group had developed its major new Panorama platform, one of its main early inclusions had been managed accounts.
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
