That is the view of Kenyon Partners managing director Paul Tynan, who was responding to recent coverage in ifa in which Wealth Within chief analyst Dale Gillham suggested mum and dad investors could lose access to independent advice.
“If every consumer starts to understand what’s really happening out there, they’re not looking to buy proprietary products. Consumers will flock to independent providers,” he said.
“The consumer hasn’t twigged to the changes, I don’t think they have a clue and all these changes that have forced vertical integration haven’t been a top priority for them.
“One day it will twig; if they go into an industry super fund [and find out] it’s about keeping them in there, and banks will only offer proprietary products.”
Tynan said there is currently an appealing space out there for advisers who can say they are not product providers but give real advice.
If you ask a group of people around a BBQ, they would say they don’t know what sort of financial advice they would look for, but if prompted most would say they would want advice independent of product, he said.
He added that in terms of platforms and technology, the bigger providers – the banks and large industry funds – don’t have any room to move and they could be the ones to lose out given the speed at which technology is moving.
“It’s the one area where the smaller ones will be up there and be able to make a good living because of technology,” he said.
I think Ang has highlighted why there will always be confusion. If advsiers have their own definitions,t ehn what hope does ma and pa kettle have of determining independent advice. If you do not control the money, you are not independent. Aligedn advisers would have a great tinme trying to pay staff and rent if the AFSL decided to turn off passing through fees (and commisions). If you are self-licensed, you are not likely to turn off your own income. Even if clients are paying fees directly, they must go to the AFSL, not the advice firm, so it makes no difference – that is independence (IMOA)
interesting view, but all to late the industry is going to be the banks & insurance company & Industry based funds, the IFA will be less than 5%, clients will be confused because of the white labelled, Any way my understanding the term Independence means you donot take comms nothing to do with being owned/alligned to a bank etc