Open up APLs says HUB24's Alcock
It is only a matter of time before the major institutions open up their approved product lists (APLs) to provide more choice, according to HUB24 managing director, Andrew Alcock.
In an analysis of the financial planning industry in 2017 and looking ahead into 2018, Alcock pointed to the number of structural changes which had occurred, many of them flowing out of the Future of Financial Advice changes.
“The confluence of these structural changes may see institutions forced to expand their offerings and the way they provide them to investors, such as providing their salaried and aligned advisers with access to non-insto aligned investment offerings and platforms,” he said.
“We're seeing the transformation of the existing wealth management advice model,” Alcock said.
"Advice arms of institutions are having to come to terms with their obligations under the best interest test and that's putting tension on the traditional way they've operated. This is challenging the status quo and forcing them to think about their models.”
Alcock said that just as the industry had seen APLs opened up with respect to choice of insurers, he believed it was only a matter of time before most financial institutions similarly opened up their APLs.
He said this would provide more choice and help advises deliver on their advice obligations.
Recommended for you
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.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
