Bank planners have most 'passive' clients
Financial planners working within large institutionally-owned planning organisations are likely to have a higher ratio of clients delivering "passive" income when compared to those working in smaller dealer group or practice environments.
That appears to be the bottom line of research published by the Australian Securities and Investments Commission (ASIC) last year and referenced in its latest Report on decisions and relief applications released this week.
The research, sitting within ASIC's assessment of the advice industry's implementation of the Future of Financial Advice (FOFA) legislation appeared to show that it was planes working within the major institutions which had the most work to do in terms of reactivating "passive" clients.
The ASIC research showed that the average number of both active and passive retail clients per individual adviser within large organisations was 469, compared to 281 for advisers within medium-sized organisations, 253 for those in small organisations and 161 for very small organisations.
However it also showed that the number of "active" retail clients for those working in large organisations was 182, compared to 166 for those in medium organisations, 164 for tose in small organisations and 103 in very small organisations.
The ASIC assessment was based on a sample of 55 licensees - 12 large, 17 medium, 13 small and 13 very small.
The ASIC research noted that the licensees in its sample accounted for close to 10,000 advisers and 4.6 million retail clients.
It said that approximately 74 per cent of individual advisers covered by the sample were authorised representatives (not employees) of a licensee and the remaining 26 per cent were employees of licensees.
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