Platforms good for investors
Brett Himbury
The managing director of a major funds management organisation has given investment platforms a glowing endorsement in the wake of a debate about shelf-space fees creating significant conflicts of interest.
Tyndall managing director Brett Himbury said: “I don’t see a conflict of interest at a fund manager level. What I do see is a business that is now backed by the some of the biggest companies in Australia.”
“The big banks are standing behind these platforms and they have invested huge amounts of money and as a result have given investors a much better experience than they’ve ever gotten with a more diverse set of fund managers at a cheaper price than has ever been available,” he added.
Himbury believes the current debate surrounding platforms is very similar to the one that industry wrestled with 20 years ago when these offerings first appeared on the scene.
According to Himbury, the debate two decades ago centred on the inadequacy of the administrative element of platforms and whether or not they should be supported on these grounds.
Today the dilemma is about whether or not to support them because of perceived conflicts of interest as a result of rebates.
He cited the ability of a fund manager to adapt ethically and legally to the changing needs of its clients as a reason for fund managers to support platforms, regardless of the rebates they need to provide to be included on them.
“We might take a haircut on our fees . . . but we’re able to do that and still increase the profitability of our business and contribute to a better client outcome,” Himbury said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
