IOOF CEO acknowledges change to advice model

IOOF/renato-mota/financial-planning/FASEA/advice-fees/Financial-Adviser-Standards-and-Ethics-Authority/

26 June 2019
| By Mike |
image
image
expand image

IOOF’s newly-confirmed chief executive officer, Renato Mota has acknowledged the company’s advice businesses will have to move to new commercial model which accommodates the reality that the days of “subsidised” advice will not work in the future.

Speaking to Money Management after his CEO status had been confirmed, Mota said there was no question that the model needed to change in circumstances where the “subsidies” which had been generated by product sales had been removed.

“That model simply will not work in the future,” he said. “We are going to have to build a model based on advice and the value of that advice.”

Mota suggested that how this would work would become more obvious as the self-employed licensee model continued to evolve.

However, he said that whatever changes occurred to the underlying commercial model, IOOF had no plans to alter its number of planning licenses

Asked whether IOOF was expecting any loss of advisers as a result of the Financial Adviser Standards and Ethics Authority (FASEA) regime, Mota said he believed there would be some reduction in numbers but that the key was putting plans in place to ensure clients were appropriately served.

He said the challenge also existed for building a pipeline of new planners.

Mota brought extensive wealth management experience to his IOOF CEO role having previously been IOOF’s group general manager, Wealth Management, before which he was General Manager of Distribution.

As well, Mota was involved in a number of wealth management transactions including the demerger of Henderson Group from AMP and National Australia Bank’s acquisition of MLC and Deutsche Financial Planning.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

2 weeks 1 day ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 6 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND