Instability and reforms will put pressure on dealer groups
Market instability and the upcoming Sherry reforms will create a pincer movement of pressure on public offer dealer groups to reduce their costs and force them to become more efficient, according to Tony McDonald, the managing director of Snowball Group.
The clarion call for dealer groups in the next five years would be efficiency, McDonald said, as dealer groups who were not efficient would be driven out of the marketplace.
The days of a “1,000 different little practices doing their own thing” was over, McDonald said. Dealer groups need to reform their models to increase their efficiency, as well as offer group services to advisers who behaved in a certain way.
He noted that dealer groups needed to become more corporatised, and they would need to find a balance between aggregation and the freedom of financial planners to offer differing models of advice. Making their businesses more efficient would give dealer groups an increased hold over their clients at a time when consumer power was increasing, McDonald said.
Recommended for you
ETF provider VanEck has announced its intention to launch a uranium and energy solution as global political agendas point to expansion in this sector.
PIMCO has announced the launch of a new active fixed-income ETF, marking its fifth active solution on the Australian market after the launch of four ETFs earlier in the year.
With the Australian advice market being a target for US private equity firms, a US advice commentator has shared lessons from his overseas experience, and why PE may be less attractive than initially expected.
Financial advisers are reminded to ensure their CPD is up to date with the Financial Services and Credit Panel making its second determination in a week after an adviser failed to meet the requirements.
