Dealer group turf war hits nearly half
The extent of the current dealer group turf war has been revealed by new Wealth Insights research revealing around 44 per cent of the financial planners surveyed had been approached to move to a rival dealer group.
The research also revealed that those most affected were planners within the Count Financial group recently acquired by the Commonwealth Bank – which is known to have been targeted by BT Magnitude.
Wealth Insights managing director Vanessa McMahon said that of the Count Financial advisers covered by her company’s survey process, 74 per cent said they had been approached by a rival dealer group to change allegiance in the past few months.
However, she pointed out that Count planners were not the only practitioners being approached – with around half of NAB/MLC and Professional Investment Services financial planners surveyed also revealing they had been approached by rival dealer groups.
McMahon said that while it was the first time her company had asked the question of planners, she regarded the results as compelling, and fully reflective of current events in the financial planning industry.
She said it seemed to confirm the existence of a turf war between major groups and the pressure on some dealer groups to retain financial planners in the face of strongly competitive behaviour by rival organisations.
McMahon said the decision by Wealth Insights to test the issue with financial planners had followed recent reports in Money Management and elsewhere suggesting lucrative offers had been made to Count Financial planners by BT Magnitude.
Similarly, MLC was openly pursuing AXA-aligned planners in the wake of AXA Asia-Pacific having been acquired by AMP.
While BT Magnitude is understood to have been the most aggressive group looking to pick up Count Financial planners, other small groups have also sought to attract practices to their brands.
AUTHOR
Mike Taylor
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
