Bank divestments will increase competition says ASIC

The Australian Securities and Investments Commission (ASIC) has forecast that a “new competitive dynamic” will evolve out of the banks’ recent divestment of life and wealth management businesses.

The regulator’s corporate plan for 2018-2022 has pointed to the divestments and the move away from vertical integration as being a key element, together with the competition recommendations flowing from the Productivity Commission’s (PC’s) recent findings and the proposal to give ASIC competition powers.

Importantly, the ASIC corporate plan has also pointed to growing demand for financial advice, citing data showing that demand for financial advice among Australian adults is growing steadily, with around 9,4 million people (52 per cent) having unmet advice needs in 2017.

Related News:

It said that while the number of Australians who had seen an adviser in the past decade had actually declined, the number of adults who intended to use a financial adviser over the next two years was forecast to rise.

This was not withstanding factors such as consumers believing they had insufficient wealth and concerns about the cost of advice.

Recommended for you




Much like Marx and Stalin BS propaganda that getting rid of corporates and free trade would create a better stringer Russia! Are these morons actually believing their own dribble? We're IFA with own AFSL and unaligned to any insto but we know you need the big guys present to have the dollars to push innovation and competitiveness, otherwise we would essentially be a cottage industry.

ASIC's view of the world is scary insane with obviously those in high office losing their grip on reality. The figures they are quoting is how slippery their grasp is, with purposely misleading information to attempt to persuade that their 'Ukraine invasion' approach has been having some benefits. I'm sure even Putin would be selling the benefits to that country in much the same way.

What fantasy!
ASIC & the RC have cleared the field for the industry funds.
Clients using advisors not sanctioned by an industry fund will not be able to fund advice fund their super. Only by using an industry fund advisor will this be possible.
Costs - few people will be able to afford advice due the cost impost of regulation.
ASIC - once again demonstrating a disconnect with reality.

Um what about the most vertically integrated of them all, ISA? Hey ASIC you inepts, how about looking properly into that operation for a change and not showing your utter bias and potentially morally corrupt attitude be displayed like dirty soiled underwear?

Cue the clown Dick Hedware or one of his other pseudonyms or back ground stooges...

Just for once it would be nice to hear the regulator make a comment that reflects reality. The banks divesting, FASEA seeing an exodus of advisers, increased regulatory cost to give advice, do not equate to increased competition

What a Crock. The industry will shrink by 30% over the next 3 years and by 50% over 5 with advice for anybody other than the "comfortably wealthy" being left for the Industry Super Funds and we all know that means no real advice. Who is going to be able to afford to offer the Professional Year to new entrants when ASIC are now solely concentrating on compensation to clients regardless of the client outcomes. Miss an annual review because the client doesn't want or need to have a review and repay the total of the Ongoing Advice Fee plus interest.

ASIC need to wake up and actually know what is going on in this industry.

Have ASIC gone mad? LESS insurance companies means LESS competition. And perhaps they should look at the insurance companies who bought the books. Raising prices on them whilst reducing prices for new business for their own brands. The ignorance of ASIC is incredible.

The "New competitive dynamic" will be towards advice under the one size fits all advice model where a client keys in the information they have to a web based program and the program spits out some recommendations under general advice which is tailored to sell the web site owner's investment/super/insurance option.

The days of the progessional adviser (other for HNW clients) are almost over. We cannot afford to jump through all the hoops unless we charge a significant amount of money upfront, as trail commissions, where you operate at a loss in the initial stage as you will make up the cost of your advice under the ongoing trail commission, are gone. Compliance has made this industry less about helping the client and all about ticking the right boxes on numerous forms which never see the light of day.

It still amazes me that a salesman at a car dealership can sell a teenager a car loan which takes 10 years to repay and costs half their disposable income, with no training or compliance. But to set up a savings plan or insurance policy for a client advisers have to spend 2 appointments and 1 whole days paperwork plus pay all this money to every government agency and sub agency so they can put diamond encrusted jewles on their toilet seats.

Add new comment