Merged planning/accounting firms offer better value
Heightened consumer expectations and demands together with changes to licensing and legislative requirements will bring accountants and planners together, according to the chief executive of specialist business brokerage, Connect Financial Service Brokers, Paul Tynan.
Tynan said financial planners were recognising the benefits and enhanced professional standing to be gained through fee-for-service remuneration structures and were moving away from the out-dated trail commission and volume bonuses arrangements.
"Accountants are also responding to consumer expectations and demands by discarding their traditional hourly fee-for-service models as the two professions move together into joint servicing platforms and clients are charged a single advice fee that reflects the collaborative more comprehensive nature of the service offering," he said.
Tynan said his company saw the merging of accounting and financial planning practices as an evolutionary process with benefits far outweighing the negatives.
However, he said one of the most important factors was the improved valuations of businesses from a greater focus on profit.
AUTHOR
Mike Taylor
Recommended for you
ASIC has launched court proceeding against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
