Ending grandfathering has positives for some
Publicly-listed platform provider, HUB24 has pointed to some positives from the Royal Commission and the impending removal of grandfathered commissions.
In an investor briefing accompanying the release of its half-year results, HUB24 said the removal of grandfathered commissions was expected to release funds under advice (FUA) from legacy products and that approved products lists (APLs) might be opened up to specialist platform providers.
The company also pointed to compliance and regulatory pressures leading major institutions to review their advice practices and recent research pointing to advisers leaving the larger institutions to become self-licensed or join non-institutional dealer groups.
“It also shows that two-thirds of the growth in adviser numbers are into non-institutional dealer groups which further increases demand for specialist platforms,” it said.
“Now that three out of our major banks have announced plans to exit wealth we anticipate further escalation of these trends throughout this period of disruption,” the HUB24 analysis said.
It also said that the traditional financial services segments were covering, with stockbrokers embracing annuity-based income models to better service clients, including through financial advice that utilised platforms and managed accounts.
“Further, financial advisers are now able to more efficiently manage directly-held assets, previously the domain of stockbrokers, overlayed with professional management (managed portfolio),” the analysis said. “HUB24 expects to benefit from both these trends.”
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.