It is only a matter of time before the major institutions open up their approved product lists (APLs) to provide more choice, according to HUB24 managing director, Andrew Alcock.
In an analysis of the financial planning industry in 2017 and looking ahead into 2018, Alcock pointed to the number of structural changes which had occurred, many of them flowing out of the Future of Financial Advice changes.
“The confluence of these structural changes may see institutions forced to expand their offerings and the way they provide them to investors, such as providing their salaried and aligned advisers with access to non-insto aligned investment offerings and platforms,” he said.
“We're seeing the transformation of the existing wealth management advice model,” Alcock said.
"Advice arms of institutions are having to come to terms with their obligations under the best interest test and that's putting tension on the traditional way they've operated. This is challenging the status quo and forcing them to think about their models.”
Alcock said that just as the industry had seen APLs opened up with respect to choice of insurers, he believed it was only a matter of time before most financial institutions similarly opened up their APLs.
He said this would provide more choice and help advises deliver on their advice obligations.