Pendal feels adviser dislocation impacts
Former Westpac-controlled Pendal Group has clearly pointed to the changing face of the financial advice industry as having significantly impacted fund flows to the company.
Pendal group chief executive, Emilio Gonzalez used the release of the company’s annual report along with its full-year results this week to point to the clear fall-out for investment managers from the Royal Commission.
He said that while Brexit had consumed the United Kingdom and Europe, the Australian market had been going through its own transformation in the wake of the Hayne Royal Commission.
“Hayne produced a rethink from the Australian banks about the extent of their participation in the provision of personal advice. They have either completely exited advice or significantly scaled back operations,” Gonzalez said.
“Advisers are also voting with their feet, with a significant number switching to privately owned groups and away from the institutional owned model.”
“It is a period of significant change, which has manifested into significantly reduced flows in the Australian wholesale channel,” the Pendal CEO said. “Nevertheless, we expect the dislocation to settle and fee positive about our medium and longer term prospects.”
“We have responded to this rapidly changing landscape by creating a more channel-focused approach with end-to-end accountability for each of our three key segments (banking and insurance, independent licensees, and private bank/family offices).”
Recommended for you
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
Australian licensees are expected to make greater use of custom model portfolios for their clients, according to State Street Investment Management, following in the footsteps of US peers.
Adviser Ratings has argued that it’s time for more advisers to utilise digital engagement tools available to them as a disconnect grows between consumers seeking advice from finfluencers and from professionals.
