AON announces advice exit

New academic research has confirmed that increasing regulation has been influential in banks deciding to exit elements of their wealth management and insurance businesses.

AON has announced that it is exiting its financial advice business and is selling its financial advice arm.

A management buy-out is being undertaken by Aon Hewitt Financial Advice.

Aon used a formal statement to say the company would also be exiting its aligned adviser channel in what represented a phased approach over coming months.

Commenting on the move, AON Hewitt Financial Advice general manager, Jayon Walker said the company was executing a management buy-out of the AON-owned businesses.

He said the new ownership model would allow AHFA to invest in the requirements of a specialised advice business and respond to the needs of the marketplace.

Aon made the strategic decision in 2017 to investigate its exit from the advice business and to focus on its superannuation and investment product offering.

The company entered into an alliance with Equity Trustees and the merger of the Executive Superannuation Fund and the Aon Master Trust in 2017 to create a $5 billion superannuation partnership.