Fiducian signals business as normal post-RC

Publicly-listed diversified financial services firm, Fiducian has signalled business as usual in the wake of the Royal Commission.

In a statement released to the Australian Securities Exchange (ASX), Fiducian executive chairman, Indy Singh said the firm saw no need to alter its business model or the way it operated or intends to operate in the future.

He said the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry had reiterated the norms of conduct which implied that law was to be obeyed, that client interests must come first, that clients should not be misled and that services should be fit for purpose, delivered fairly and with reasonable care.

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Singh also signalled that Fiducian would not be significantly impacted by an end to grandfathered commissions from the beginning of January 2021.

He said the firm had been working on converting commissions to fee for services that were agreed in writing with clients since the implementation of the Future of Financial Advice (FoFA) changes.

Singh said the bulk of clients were already on fee for service arrangements and those that were outstanding included client book acquisitions made over the last few years which were in the process of conversion.

His statement said about four per cent of the group’s net revenue was from grandfathered commissions, and it was estimated these would be largely covered to fee for service before 2021.

Singh said that insurance commissions and mortgage broking were not Fiducian’s core business and were therefore not likely to have a material impact on revenue.

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