Warning on homogenisation of industry
|
|
Recent buying activities by the major financial institutions are threatening to kill off boutique fund managers, according to the chief executive of Premium Wealth Management, Chris Saunders.
Saunders said the boutique fund managers were in danger of not being able to compete in a homogenised investment industry.
“With the financial services industry contracting due to large scale buy-outs from the banks and other institutions, maintaining diversity and independence within our industry — both dealer groups and fund managers — should become a key objective for those of us who remain independent,” he said.
Saunders sought to reinforce his concerns about the increasing dominance of the major institutions by referring to the Australian Securities and Investments Commission submission to the Parliamentary Joint Committee of Inquiry on Corporations and Financial Services, which asserted that 85 per cent of Australian financial advisory businesses were now associated with product manufacturers.
However he claimed that, regardless of what changes might flow from the recommendations of the Parliamentary Inquiry, the financial planning industry had already changed thanks to the global financial crisis and the swallowing of boutiques by major institutions.
Saunders claimed it was in these circumstances that boutique fund managers needed to collaborate closely with independent advisors, rather than offering “me-too products”.
He said the boutiques needed to offer products and services of value to advisors and their clients.
AUTHOR
Mike Taylor
Recommended for you
While crypto continues to gain traction among investors globally, improving accessibility for financial advisers is key to helping them serve the demand from younger clients, but there are some barriers still hindering adoption.
Investment platform Praemium has reported strong 2024–25 financial year results, with large increases across a range of business metrics, which it credits to the firm’s strategy and high-net-worth focus.
Alternative investment manager Regal Partners has set a target of doubling its offshore funds under management within three years amid strong inflows from offshore investors in the first half of 2025.
Fitzpatricks Advice Partners has formed a strategic alliance with two chapters of a global business support and networking organisation, expanding its offering for the firm’s advisers.
