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
While model figures provide valuable insights on how advisers can draw benefits from managed accounts, Zenith’s head of portfolio solutions has argued that professional judgement and quality research are key to successful implementation.
While the number of financial services staff using AI has almost doubled in the last year, two surveys have revealed that fast-paced AI adoption has led to governance gaps and growing concerns about job security.
Entireti has partnered with Striver to connect graduates and job seekers with its advice network to support the placement of new talent.
ASIC has cancelled the Australian financial services licence of Ivy League Capital Pty Ltd, a firm authorised to provide advice in relation to managed investment schemes.
