Boutique clients moving to bank model: CBA
An increasing number of financial planning clients are leaving boutiques for the security of the bank financial planning model, according to Commonwealth Financial Planning general manager Tim Gunning.
"We're seeing new clients that have had relationships with smaller boutique businesses and who are unhappy with the advice they were given or the performance of their investments," Gunning told Money Management.
He acknowledged that the bank “might be a beneficiary more than most of a possible flight to security, considering the strength of our brand and position in the financial planning market".
"There is also probably an element of clients searching for a back-to-basics model ... and we do try to provide simple investment solutions that clients can understand.”
Gunning said these boutique clients were often to be found among the more than 4,000 referrals a week that Commonwealth Bank Financial Planning was receiving from the bank’s client base.
Activity levels are down but we are not seeing a massive drop in the number of new clients. We’re still seeing new clients and we're also successfully implementing the financial plans we are presenting to clients, Gunning said.
At the same time, Gunning said he was increasingly concerned by growing evidence of a “capitulation of investor sentiment in our own market”, manifested by people changing their investments at the wrong time and by redemptions.
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
