Client-centricity trumps product distribution
Traditional licensee models predicated around a distribution mind-set are unlikely to survive the industry shift towards a professional services orientation, according to Fortnum Financial Group chief executive, Neil Younger.
Promoting Fortnum’s newly-created Professional Advice Framework, Younger said he believed that to be a partner of choice and relevance for self-employed financial planning practices, the industry had to move away from the typical Australian financial services licence (AFSL) licensee construct and evolve around two clear foundations: advice services and business services.
He claimed it was critically important for both licensees and advice practices to future-proof their business and cited the Professional Advice Framework as being an appropriate example.
Fortnum kicked off its new Professional Advice Framework with the release of a white paper earlier this month in which it argued that a client-centric approach would trump product distribution.
Recommended for you
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
Two investment advisory research houses have announced a merger to form a combined entity under the name Delta Portfolios.
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
