Lambert predicts more AFSLs will disappear
It is only a matter of time before commercial reality will see more Australian Financial Services Licences (AFSL) disappear, according to Count Financial founder and chairman Barry Lambert.
In a column to be published in next week's edition of Money Management, Lambert has outlined the reasons for the number of AFSLs being handed in and the problems which exist for those who seek to sell their AFSL.
"Maintaining an AFSL requires a great deal of time and expense, which could otherwise be used maintaining client relationships and developing the business," he said. "An adviser should spend their time being the best planner they can be for the benefit of their clients and their business.
"Maintaining an AFSL requires an investment in the right resources and knowledge to keep on top of markets, products, regulatory change and compliance requirements.
"The FOFA [Future of Financial Advice] regulatory environment has made this even more apparent. Some small AFSL holders may be out of their depth in this regard, making their AFSL a liability rather than an asset," Lambert said.
He said that, on this basis, "it is only a matter of time before commercial reality will see more AFSLs disappear".
"Take a look at the disappearance of some Australian Securities Exchange (ASX)-listed AFSLs and the poor performance of those that remain, and you will realise the trickle of AFSLs being handed back will soon become a flood," Lambert said.
Elsewhere in his column, Lambert warns that the impact of accountant licensing should not be ignored, and asserts that accountants "own" the self-managed superannuation fund (SMSF) space and will not readily cede it to planners.
AUTHOR
Mike Taylor
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
