FOFA’s grandfathering provisions have made independent financial planning firms more attractive from the perspective of prospective purchasers, according to an industry business broker.
In a submission to Treasury calling for greater clarity on the situation regarding grandfathered commissions under FOFA, John Birt of Radar Results has expressed concern about financial planning practice values.
"It's now more attractive to have your own AFSL because you can move the clients and commissions to another licensee, as long as they have abided by the deadline of 30 June,” Mr Birt said, having sought legal advice on the grandfathering regulations.
“This probably makes boutique licensees more attractive as an acquisition proposition,” he added.
Mr Birt also said demand for financial planning client books and business is at an all-time high, with books with recurring revenue of $100,000 to $300,000 particularly sought-after, followed by those with self-managed super fund client bases.
Financial advisers won’t get any relief from the $20 million sub-sector cap, however the revised estimate for the ...
The corporate regulator said it is “considering what options” it has to hold super trustees, such as Macquarie and ...
In what Wealth Data has described as a “bloodbath”, adviser losses for the end of June have come in 143 per cent higher ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin