There will be significant growth of business coming from mid-tier financial advice groups during FY20 as advisers look to exit large dealer groups, HUB24 believes.
The platform provider said institutional dislocation in the advice industry continued at an accelerated rate, following the Royal Commission.
HUB24 managing director, Andrew Alcock, said: “Recent decisions by large institutions to review their approach to financial advice, and in some cases exit, will facilitate growth in the mid-tier segment which is highly motivated to look for new partners to support advisers in positioning for the future and delivering great outcomes for their clients”.
Pointing to Adviser Ratings data, HUB24 said over 700 advisers had moved to licensees during Q2 2019, a 20% increase from Q1.
The data also found that four times as many existing advisers were moving to a non-aligned licensee and this represented an acceleration of the trend which made the segment experience the largest growth.
HUB24 said over the past months it had signed agreements with two non-bank owned advice groups – Centrepoint Alliance and Madison Financial Group.
“HUB24 is delighted to be working with Centrepoint Alliance and Madison Financial Group who represent a dynamic, exciting and growing part of the advice industry. Providing choice to advisers and their clients and giving them the support they need is at the core of what we do,” Alcock said.