Labelling advice would boost transparency: Infocus
Proposals to introduce a ‘restricted advice' label would help to bring transparency to the financial advice consumers Infocus managing director Rod Bristow believes.
Backing issues raised by the Finnacial System Inquiry relating to the proposed adviser register and the Australian Securities and Investments Commission's proposal for labelled advice, Bristow said greater transparency was needed to ensure consumers were aware of where their advice was coming from.
"As we've said many times, healthy competition demands a diverse market structure," he said.
"This includes a mix of independent and aligned financial advisers. Making the ultimate holding company of a licensee clear for consumers will enhance consumer understanding of their advice and product relationships."
Bristow said the importance of labelled advice was highlighted by a recent Roy Morgan Research report, which revealed that the majority of consumers were unaware the dealer group they were using was aligned to a major financial institution.
"It's hard to believe with all the recent media surrounding the industry that consumers aren't doing their homework on who their adviser works for," he said.
"We don't think it's appropriate to have consumers wading through complex web pages or having to read fine print in their FSG to determine their advisers' employer."
AUTHOR
Nicholas O'Donoghue
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
