After reporting an 18 per cent fall in cash profit for the 2016 financial year, ANZ today revealed that a strategic review of its wealth businesses in Australia and New Zealand concluded that while the distribution of high wealth products and services should remain a core component of the group’s overall customer proposition, the bank does not believe it needs to manufacturer them.
“The initial focus will be on the Australian wealth business where ANZ is exploring a range of possible strategic and capital market options that will maintain strong outcomes for customers,” the bank said.
“This includes the possible sale of the life insurance, advice and superannuation and investments businesses in Australia. ANZ will pursue a disciplined approach to this process and will update the market as appropriate.”
ANZ said its wealth business in New Zealand will be considered separately during 2017.
The news comes after the major bank announced on 31 October 2016 that it had entered into an agreement with DBS to sell its retail and wealth businesses in Singapore, Hong Kong, China, Taiwan and Indonesia.
ANZ said it intends to clarify plans for the remaining businesses in retail and wealth in Asia during FY17.
[quote=Jim Stackpool]Great news. Another step hopefully closer to getting the bankers to be bankers and allowing the advisers to be advisers. Look at medical world – there the pharmacist and doctors are respected, accredited, and professional. Both play important roles, but look at how they are remunerated, one for quality advice, one for quality products. That’s the marketplace of our client’s future whether we’re ready for it or not. Bring it on asap…[/quote]
Well said Jim.
That’s really good news. ANZ bank can get rid of those project managers, BDMs and marketing managers that are clueless yet holds a nice title. The excess fat. Used to work for one of ANZ’s division. Back then the marketing manager can interfere with accounting policy and how the accounting division was run just to push through her marketing agenda ie to make her marketing materials look good and the division director allows that to happen. Real issues doesn’t get solved because marketing manager has taken out a big chunk of the budget. Pretty sure it’s still the same now. Pathetic
Crystal clear that compliance cost has killed the FP industry. You can join hands & sing kumbyah all you like & quote the every tiring cliche motherhood statements about being passionate about service & just love caring for your clients all you want, but if it’s not profitable your just wasting your time. To be profitable in today’s FP world it means charging through the nose for the most basic of services and advice, no business will survive that, none. Getting the message yet people? This is just another canary in the coal mine moment your all ignoring to see the real picture on.
Great news. Another step hopefully closer to getting the bankers to be bankers and allowing the advisers to be advisers. Look at medical world – there the pharmacist and doctors are respected, accredited, and professional. Both play important roles, but look at how they are remunerated, one for quality advice, one for quality products. That’s the marketplace of our client’s future whether we’re ready for it or not. Bring it on asap…
AS an IFA we should be careful what we wish for or gloat over. Yes the Banks have continually stuffed up the wealth advice segments of their businesses and have been the target of regulator scrutiny and action but will the industry be better off if the Banks leave? No. The Banks will quickly realise that direct offerings are the way to go and the training ground (flawed though it may be) that many advisers have used to get experience and confidence in the industry will be lost and the remainder of the industry will be under more scrutiny. Not to mention, who will service the mums and dads currently using the institutions, they aren’t going to want to pay and the industry wont be able to afford them.
Round and round we go – how many times in past decades has the banking sector decided to dump these sectors only to have new brooms with bushy tails and a gleam in their one eye come along a few years later and who suddenly decide it would be a jolly good idea to set up wealth and advice arms? The banking sector either lacks or has an appalling historical knowledge base to reference when making such decisions. How much has been destroyed by the arrogance of those individuals appointed to Boards and Management of Banks?
What an opportunity for someone to take over what is quite a good business and make in more efficient and people more accountable. The chickens have finally come home to roost (Macquarie, AMP, ANZ Wealth etc, etc) . Perhaps people will now realise why the Industry is in the mess it is and not throw the baby out with the bath water by blaming Advisers!
No surprise here, more to follow, if the banks aren’t making money out of wealth i.e advisers selling their product why take on all the risk of having self employed businesses, that the bank has little control over, attached to your brand.
Surprised, No, yet another Bank has found that it was a mistake to buy an Insurance manufacturer, when will the rest wake up and leave. Maybe then we can have real reform without interference of the BANKS