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Future 'polarisation' likely in financial services: ASFA

The financial services industry will face polarisation over the next 18 months to two years, according to Pauline Vamos, CEO of the Association of Superannuation Funds of Australia (ASFA).

The industry is likely to see a shift following implementation of the Future of Financial Advice (FOFA) reforms on 1 July 2013, and is expected to see a polarisation in the next 18 months to two years, Vamos said.

"I think we will have a number of boutique advisers who service a limited number of high net worth clients and provide a holistic service," Vamos said.

"Then I think we will also see a number of advisers who are attached to large providers.

"With those businesses you will have various parts of that financial advice business doing the full range of financial planning," she said.

In the meantime and in the lead-up to FOFA implementation, she said, advisers should embrace professionalism, make ethics the 'hallmark' of the way they do business, remove the 'bad apples', design processes and ensure they are prioritising the client.