Boutique clients moving to bank model: CBA
An increasing number of financial planning clients are leaving boutiques for the security of the bank financial planning model, according to Commonwealth Financial Planning general manager Tim Gunning.
"We're seeing new clients that have had relationships with smaller boutique businesses and who are unhappy with the advice they were given or the performance of their investments," Gunning told Money Management.
He acknowledged that the bank "might be a beneficiary more than most of a possible flight to security, considering the strength of our brand and position in the financial planning market".
"There is also probably an element of clients searching for a back-to-basics model ... and we do try to provide simple investment solutions that clients can understand."
Gunning said these boutique clients were often to be found among the more than 4,000 referrals a week that Commonwealth Bank Financial Planning was receiving from the bank's client base.
Activity levels are down but we are not seeing a massive drop in the number of new clients. We're still seeing new clients and we're also successfully implementing the financial plans we are presenting to clients, Gunning said.
At the same time, Gunning said he was increasingly concerned by growing evidence of a "capitulation of investor sentiment in our own market", manifested by people changing their investments at the wrong time and by redemptions.
Recommended for you
Retail investment into private credit funds could surpass that of sophisticated investors, according to ASIC, but the regulator admits it is unsure how and where these individuals are first being introduced to the vehicles.
With the high cost of advice keeping young Australians locked out of advice, a fintech provider has said digital advice is key for licensees to capture this unadvised demographic.
ASIC chair Joe Longo has announced he will step down at the end of his term, departing the corporate regulator in May 2026.
When it comes to the phase-out of AT1 bonds, Schroders fixed income manager Helen Mason has urged financial advisers to sell up sooner rather than later or risk capital losses.
