ClearView removes advice cross-subsidies
ClearView has signalled its intention to end the cross-subsidisation of its advice groups on the basis of fundamental changes it sees occurring within the industry in the wake of the Royal Commission.
The publicly-listed insurer and which operates ClearView Financial Advice, Matrix Planning Solutions and LaVista licensee solutions and boasts more than 200 planners has used an investor briefing to point to the changes it sees occurring in the financial planning industry.
Pointing to the strategic nature of its LaVista licensee solutions offering, the ClearView briefing said: “We’re seeing vertical disintegration across the industry with some institutions voluntarily selling or spinning off their wealth businesses”.
“At the same time many professional financial advisers are agitating for greater independence by leaving institutional dealer groups and gaining their own Australian Financial Services License,” it said.
ClearView said operational efficiency would become another attractive component of the LaVista offering, as the overhaul to commissions and other ‘conflicted remunerations’ were ultimately removed.
“The future state for dealer groups requires the removal of cross-subsidisation between the manufacturer and advice business and replacement of grandfathered commissions and rebate revenue streams that has driven economic value in the industry for some time,” it said.
“ClearView is focused on supporting financial advisers through an industrial strength back office to help make their practices compliant and more efficient either when they are licenced by our dealer groups or alternatively where they operate their own licence.”
Recommended for you
TAL has introduced four new courses to its Risk Academy focused on ethical dilemmas as part of Ethics Month to help advisers meet their CPD requirements.
Unadvised Australians believe they need $2 million to retire comfortably, according to Colonial First State, a wide variance compared to advised individuals which estimate $1.3 million.
Financial advisers can now access Vanguard’s diversified managed account strategies on HUB24 and Netwealth, marking a “significant expansion” through new distribution channels.
The heads of two financial advice licensees have joined the board of the Financial Services Council as it looks to deepen its engagement with the space and strengthen its representation.
