Managed accounts – a post-FOFA revenue-driver

4 August 2017
| By Mike |
image
image
expand image

The significant emergence of managed accounts can be attributed in large part to the impacts of the Future of Financial Advice (FOFA) regime particularly on the revenue streams of the licensees, according to Institute of Managed Accounts Professionals chief executive, Toby Potter.

Addressing Money Management’s Fintech Platforms and Wraps Conference on the Gold Coast, Potter pointed to the manner in which the FOFA rules around things such as volume rebates destroying licensee revenue streams had been a driver for the rise of managed accounts.

“Managed accounts have helped recreate a revenue stream for licensees,” he said.

“What we’re seeing is managed accounts becoming a key way for licensees to provide services and a key way to the way in which they [licensees] are being reinvented,” Potter said.

The IMAP chairman acknowledged that he had been an advocate of managed accounts for most of the past two decades but said it had only been in the last three or four years that the growth he had always predicted had actually come about.

He said it was a measure of the importance of managed accounts in the current environment that when BT Financial Group had developed its major new Panorama platform, one of its main early inclusions had been managed accounts.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago