Consolidation inevitable, says Perpetual's Deverall


|
Perpetual chief executive David Deverall has pointed to the likelihood of further merger and acquisition activity within the financial planning arena as part of a company update delivered to shareholders today.
The company update, released to the Australian Securities Exchange, revealed that while Perpetual still sees client confidence as being “battered”, it believes it is starting to improve.
Deverall’s presentation said while the Australian financial services industry remained in a net outflow position, there were clear signs institutions and high-net-worth individuals were poised to rebalance from cash into equities.
However, he also pointed to some of the challenges and issues confronting the industry, such as the May Federal Budget serving to undermine confidence in superannuation, the number of industry reviews currently on foot and the arrival of a new Federal Minister.
Deverall’s presentation suggested he believed consolidation was inevitable as a result of the “AustralianSuper effect” on fund mangers, increased merger and acquisition activity on the part of financial planners and the consolidation activity that was already underway.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.