Internal conflict to let down a generation of investors
Infighting within the financial services sector could let down a generation of investors, a leading business consultant believes.
T&C Consulting's Tony McDonald, warned the profession should be careful what it wishes for, as debate rages between rival organisations over the Future of Financial Advice reforms.
"There's a fair bit of infighting [going on at the moment] and you kind of expect that given what's at stake, particularly for some of the larger organisations in the industry," he said.
"We all understand the moral arguments and the points of principle that are going on in the industry.
"But at the time, with this trench warfare that seems to be going on, you've got to ask yourself whether that isn't going have the unintended consequence of the consumer sitting on the sidelines looking at this fight going on and saying ‘I just don't want to play'.
"The tragedy is that by demonising [financial] advice we run the risk that people aren't going to seek good advice and therefore you are going to let down a generation of people who should be getting advice."
McDonald said that while internal disputes within the profession threatened to drive consumers away from seeking advice, the majority of those who have sought advice have been happy with the results.
"Statistically, and we know there are exceptions, it looks like when people do get advised they are generally happy and there are generally getting value and they are generally getting better outcomes," he said.
AUTHOR
Nicholas O'Donoghue
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
