Challenger feels advisers’ pain
Challenger Limited has acknowledged that the negative perceptions of financial planners generated by the Royal Commission and other events are having an impact on its annuities business.
In commentary attaching to the release of its half-year results, Challenger said its Life business relied on financial advisers, both independent and part of major hubs, to distribute its products.
“Following hearings on financial advice in the Royal Commission into Misconduct in the Banking and Financial Services Industry there has been reduced customer confidence in retail financial advice and significant disruption across the adviser market,” it said.
“This includes increased adviser churn and reduced acquisition of new clients by financial advisers.”
“While there is a relatively less direct impact form the Royal Commission final report on Challenger, and Life’s customers are not questioning the quality of its products or services, the disrupted industry environment is impacting Life’s sales,” the commentary said.
“Life has a strong reputation with adviser trust in the quality of its products and services and is broadening its distribution reach by making its annuities available on platforms targeting the individual financial advisers market,” it said.
Recommended for you
The restructure of Insignia Financial’s advice network into two parts could lead to further adviser attrition than initially forecast if advisers shun the salaried model, Morningstar believes.
The Australian Wealth Advisors Group has taken a 20 per cent stake in two Australian wealth management firms, having also made two investments last year.
A decade after being permanently banned from financial services, a former financial adviser will finally face court in WA following a failed bid to avoid extradition.
Only a third of Australians are willing to pay more than $500 for advice, thousands of dollars behind what advisers need to charge just to stay in business.
