Financial advisers are increasingly worried about the value of their business following the implementation of FOFA, according to a financial services business consultant.
Seaview Consulting has seen a growing number of inquiries about practice value in recent months, according to a statement.
“It is my view that in the short term the trend for values will continue to be down across the board,” said Seaview director Bob Neill.
“It is important to understand that value is a measure at a point of time and it is based on a view of what is going to be delivered in the future.
“The more certain the outcome, in other words, the lower the risk, then the greater the price someone may be willing to pay for the future results. Inversely the less certain or greater the risk then the less someone will pay.
“This is a fundamental that simply does not change and should be kept in mind when determining what the impacts of change are going to be”.
SUBSCRIBE TO THE IFA DAILY BULLETIN
News
- 16 Nov 2018Government sets $51m to pursue misconductBy Eliot Hastie
- 16 Nov 2018The financial advisers most people don’t read aboutBy James Mitchell
- 16 Nov 2018Clients expect advisers to understand their situationBy Eliot Hastie
- 16 Nov 2018Retirees hit hardest by franking credit changes, says FSCBy Sarah Simpkins
- 16 Nov 2018Trust in advice more important than everBy Stephanie Aikins
- 15 Nov 2018We’ll lose advisers through FASEA but it’s necessaryBy Adrian Flores
- view all
