End to grandfathering has tipped the balance
The removal of grandfathering in 2021 appears to have tipped a number of financial planners over the edge in terms of their decision to exit the industry, according to an ongoing survey being conducted by Money Management.
The survey, when taken together with earlier Money Management research on the impact of the Financial Adviser Standards and Ethics Authority (FASEA) regime suggestions that planners who were considering exiting but remained undecided, had made up their mind following the release of the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
However, the number of planners indicating they have made up their mind to exit is still only around 35 per cent.
A significant proportion of planners responding to the survey had also signalled the degree to which an end to grandfathering has served to undermine the value of their businesses, with more than 40 per cent stating it has had an impact in terms of buyer of last resort (BOLR).
The survey is ongoing so please share your views here.
Recommended for you
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.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.
