FOFA not an end for non-aligned groups
Independent dealer groups can still thrive in the post-Future of Financial Advice environment given the right structure, according to the Australian Financial Services (AFS) Group chief executive, Peter Daly.
Daly's comments followed what he said was negative industry sentiment about the future of non-aligned dealer groups, after recent acquisitions of Count by the Commonwealth Bank and DKN by IOOF.
Daly had confirmed that AFS was approached by three larger dealer groups for acquisition, which he said were turned down as AFS "would continue with its new direction that focussed on long-term strategic growth".
This comes despite the dealer group being on the market for nine months over the past year.
Daly said the group, which now promotes itself as "adviser owned and adviser driven", will embark on a restructure to develop a more FOFA-friendly framework at the adviser and dealer group level.
The restructure will see a comprehensive review of the dealer group's approved product list, Xplan software integration and a wide review of compliance structure and systems.
Daly added the restructure would be reflected in an expected stagnated operating financial performance in the 2011-12 financial year, but that the group would reap the financial benefits through increased profits in the longer term.
"Dealer groups and advisers that have not yet embarked on their transformation journey will face a very bleak future indeed," Daly said.
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