Yesterday Macquarie announced that its private bank business – which focuses exclusively on high-net-worth clients with assets of $1.3 million or more – has been folded into the group’s wealth management arm.
A statement from the firm explained that the restructure will “impact a number of advisers” and that it is “facilitating discussions with other firms and assisting with their transition”.
Sources within Macquarie told ifa that the “vast majority” of advisers continue to work for the amalgamated division, but that a number of advisers that do not suit the announced high-net-worth client focus will be transitioned to other business units or exited from Macquarie entirely.
Macquarie head of wealth management Bill Marynissen said, “Focusing on attracting high-net-worth clients is a logical evolution of our private client business and we believe it is a space in which we can be a market leader.
“We have carefully assessed growth opportunities in the high-net-worth segment against the strong fundamentals of our business.
“These include a deep understanding of the high-net-worth segment, our wealth and banking expertise and suite of solutions, and the capacity to build on our existing digital capabilities.”
The strategy reflects the path taken by NAB, which announced the sale of MLC and a renewed focus on its high-net-worth JBWere business.
Read between the lines.
IT IS IMPOSSIBLE TO SERVICE FINANCIAL PLANNING CLIENTS, BE COMPLIANT AND MAKE MONEY. IT JUST DOES NOT AND CAN NOT EVER WORK.
You are kidding yourselves if you think you can handle and put up with this mountain of red tape and compliance AND run a business that works.
No other industry has been under such constant ATTACK and brutal change than financial planning.
I feel sorry for you poor fools that need to stay in this circus of an industry run by the biggest clowns around, the FPA. The modern day wharfie union.
Still, you might get on their good side like Sam Henderson and they will turn a blind eye to your dishonest practices and morally bankrupt ways.
So both Nab & Macquarie want out of retail financial advice. Will only deal with Wholesale clients.
Regulator are you paying attention?
Financial Planning for common people is dying. The cost to serve is now greater than the value added. Thanks for destroying an important industry.
The regulator has looked to protect mum and dad from advisers and commission based remuneration. In doing so the regulator has closed out mum and dad from being able to afford such advice on the fee for service model. If I don’t get paid for placing risk insurance via commission , but charge a fee for service how can I justify looking after that client from time of fact find to time of that client either claiming in the insurance or no longer needing it. ?
I’m gona go and write some low net wealth clients. Must be plenty of them around as no one else is interested in them anymore.