Standing on the shoulders of giants

On August 8, 1987,Money Managementpublished its first edition with the front page stating that tougher licensing rules had been approved by the regulators of the time. Fifteen years later it is ironic, but not unpredictable, that this would still be an issue.

Despite the fact that much has changed since that edition — including the people penning the words and those who read them — the issues facing the industry remain largely the same.

We were surprised and amused while pouring over past editions, to read once again of the endless tussles between financial planners and their dealer groups over the thorny issue of remuneration. The search for scale was also an issue, as was the split between the large and small ends of town.

There was a steady procession of amazing successes, wild failures, big name acquisitions and even bigger name departures. We also saw the rise of some well-known individuals and the decline of others as they either moved out of the industry altogether or, in a few sad cases, passed away.

While all this was happening, the financial planning and funds management industries were working through their evolutionary developments while tackling all types of markets and the changing moods of clients in them.

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Product has never been out of focus over the last 15 years, but administration platforms took on a dominance not even foreseen by their creators, while the risk side of the industry has dropped away in prominence as the market became more interested in investment performance than investment protection.

There has also been a number of singular events which have had a profound effect on the industry. The superannuation surcharge, the introduction of the Goods and Services Tax (GST), the Financial Services Reform Act, Policy Statement 146, the Managed Investments Act, market crashes and on it goes.

So after looking backward, what is there to see looking forward? In some ways it is a reflection of the past while also offering new perspectives. The battle for distribution will continue as will the adviser staking their place in the value chain, but the unbundling of the service offering will challenge commoditised service providers.

Funds management groups will still be the giants of the industry but may have to share their place with the banks, which are finally gaining the scale they seek and are learning what it means to offer valuable financial services offerings.

Platforms will also redefine what and how product is distributed and how planners make use of those products.

So if the past 15 years have been a roller-coaster ride, the next offer just as much action and colour.

As such it is a great privilege to be a journalist and editor withMoney Management,and much thanks goes out to all those who have been involved with the paper in the past. Our continuing success today is due in no small part to the fact that we stand on the shoulders of giants. And like them the current staff ofMoney Managementwill strive to continue to bring the most up-to-date and informative news, features and opinion to its readers.

We hope that you enjoy the following retrospective and we look forward to having you with us over the coming decades.

Jason Spits

Editor