Strategy First recommends two-tiered service provision model
|
|
The financial advice industry should be split into two separate professions — financial advisers and financial product advisers, according to Strategy First Financial Planning’s submission to the Parliamentary Joint Committee on Corporations and Financial Services.
A two-tiered service provision model would distinguish between independent service providers and advisers who are associated with financial products and companies, recommended Strategy First managing director David Price.
Meanwhile, despite more than 70 per cent of planners likely to resist reforms that ban third-party payments, Price believes it is the only solution to ensure the financial planning sector remains viable.
“Only a complete overhaul of the industry that involves banning commissions and creating a profession with distinct service providers will save the financial planning industry from the growing distrust and discontent with which it is viewed by the Australian community,” Price said.
AUTHOR
Corrina Jack
Recommended for you
A former AMP adviser told the Federal Court how they are scared to turn off their phone after a fellow adviser attempted suicide as Justice McElwaine said the 92 objections “weighed heavily” on his mind.
Providence Wealth Advisory Group has appointed a new chief investment officer, a dedicated position after the role was previously held by its CEO.
While hiring new staff in a financial advice practice inevitably incurs expenses, Striver’s Alisdair Barr says the greater business cost can come from losing the skills of a valuable team member.
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
