Struggling boutiques turn to risk
|
|
Boutique financial planning practices are focusing on broadening their services and achieving organic growth at the same time as writing more risk, according to new research released by Macquarie.
Macquarie Practice Consulting’s 2010 Boutique Practice Benchmarking study found that average funds under advice for boutique firms had fallen 26 per cent in the past two years to $136 million and that because insurance had been identified as a solid opportunity, the proportion of revenue received from insurance had increased.
It said 43 per cent of firms had revealed they generated more than 10 per cent of their revenue from risk during the past year, indicating this was likely to be an area of future growth.
Commenting on the latest study, the head of Macquarie Practice Consulting, Liz McCarthy, said it highlighted a number of key challenges being confronted by boutique firms.
“Boutique financial planning practices have faced a number of challenges during the past 18 months; revenues have dropped significantly and attracting new clients has been a particular struggle,” she said.
McCarthy said, as a result, many of the firms have been looking at ways to diversify their income and increase their focus on other services.
AUTHOR
Mike Taylor
Recommended for you
Shaw and Partners’ new national head of private wealth believes the biggest challenge for financial advisers right now is being able to deliver efficient advice delivery amid a complex regulatory environment and growing investment universe.
Global equity manager Orbis Investments has appointed a head of marketing from Capital Group as it becomes the latest manager to target advised retail investors.
While Australia prepares for the $3.5 trillion intergenerational wealth transfer, a Wilsons Advisory report suggests the ongoing gender imbalance in the advice profession could prove a challenge to this process.
Danielle Press, a former ASIC commissioner, is to chair a new AFSL committee set up by Sequoia which seeks to improve governance practices and review its approved product lists.
