Dealer group wars hurting succession plans: Tynan
Many planners would like to retire, but their succession plans are being disrupted because dealer groups only want to preserve funds under advice, says Kenyon Partners chief executive Paul Tynan.
"There are a lot of baby boomers out there just sitting on their hands when they should be coming to market and releasing capital," he said.
This "fundamental problem" for the industry is even starker for planners in rural areas, since there is often no one the dealer group can "parachute in" to the take over the practice, he added.
"If [a planner] is out in Dubbo and there's no other person who could take it on, is [the dealer group] really going to help out 100 per cent with the succession plan?" Tynan asked.
"Unless the dealer group can find a buyer from Dubbo, they're going to let the poor bloke sit there and feed him their perception of what the market is like," he said.
But contrary to the perception of many planners "at the coalface", there are more players looking to buy than sell at the moment, said Tynan.
A lot of the interest is coming from private equity firms or funds management businesses that are looking to target independently licensed financial planning practices, he said.
"Everyone I've spoken to has said 'great', because it's not a normal institution knocking on the door. They welcome that.
"The one thing we don't want is to [have the market] dominated by the 'big four' and AMP/AXA. It's really good getting new buyers in the market," he said.
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