End to grandfathering has tipped the balance
The removal of grandfathering in 2021 appears to have tipped a number of financial planners over the edge in terms of their decision to exit the industry, according to an ongoing survey being conducted by Money Management.
The survey, when taken together with earlier Money Management research on the impact of the Financial Adviser Standards and Ethics Authority (FASEA) regime suggestions that planners who were considering exiting but remained undecided, had made up their mind following the release of the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
However, the number of planners indicating they have made up their mind to exit is still only around 35 per cent.
A significant proportion of planners responding to the survey had also signalled the degree to which an end to grandfathering has served to undermine the value of their businesses, with more than 40 per cent stating it has had an impact in terms of buyer of last resort (BOLR).
The survey is ongoing so please share your views here.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
