Advisers focused on growth, despite reforms
Most advisers are focused on business growth, despite almost 75 per cent claiming the proposed fee-for-service models and opt-in arrangements would have a somewhat or strong negative impact on their businesses.
That is one of the key findings of the ‘Tides of Change’ research, commissioned by the Association of Financial Advisers (AFA) in partnership with NAB Financial Planner Banking, which was presented at the 2010 AFA National Conference.
It was also noted that less then 10 per cent of the surveyed advisers expect a positive change after the implementation of the Future of Financial Advice reforms.
NAB Financial Planner Banking national manager Shane Kirsch said the goal was to discover the biggest challenges faced by its adviser customers, “so that we can assist in this transition period”.
“A key finding from the research is that advisers strongly believe that the proposed reforms, in particular the opt-in and new fee models, will have a negative impact on the valuation of their businesses,” said Kirsch. “This is important to us to ensure we understand the impacts on cash flow and the ability for advisers to service all commitments of their businesses,” he added.
Kirsch also highlighted that almost 75 per cent of survey participants planned to grow their business organically, while 12 per cent wanted to do so via acquisition.
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