Referral relationships still troubled
Despite calls for financial advisers to be more aligned with other related services providers such as mortgage brokers and accountants, referral relationships will not be assisted by regulatory changes, according to Wealth Within co-founder Dale Gillham.
The problem is advisers, accountants and brokers each want to 'own' the client, and often the feedback following a referral is that the client isn't being looked after by the new provider, he said.
Because accountants are paid on a fee-for-service basis and many advisers still earn trails or other commissions, this can also make an accountant reluctant to refer a client.
However, with accountants more able to give what amounts to limited financial advice under upcoming regulatory changes, advisers may feel that accountants are encroaching on their territory, Gillham said. Accountants are tax specialists, but are not trained to pick stocks or build share portfolios, he added.
However, an accountant still needed to examine a client's risks and refer them to a specialist if they find the client is underinsured, Gillham said.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
