Increasing consumer demand for independently-owned financial planning has driven one licensee to extract itself from a 20 per cent institutional ownership arrangement.
Sydney-based dealer group Fortnum Financial Advisers has announced it is purchasing the 20 per cent stake in its business currently owned by ANZ Banking Group, as a result of a legacy investment by ING Australia, prior to its acquisition by OnePath.
Fortnum executive chairman Ray Miles told ifa yesterday that a desire to be described as an “independently-owned” firm largely drove the decision to free the licensee of institutional ownership.
“ANZ and OnePath have been a good partner and we have a good relationship with them, but being at 20 per cent is neither here nor there,” Mr Miles said. “It’s a nuisance for both of us and didn’t make sense. It was preventing us from being called independently-owned.”
More broadly. the dealer group boss anticipated a shift in consumer demand for independent financial advice, which he says gives a non-aligned advice business a “strategic advantage”.
“The Australian public are looking for places they can go for non-conflicted financial advice and finding it pretty difficult,” he said.
“We have been through this stage of consolidation, but I don’t think that’s relevant now. I think there are a lot of people sitting [on institutionally-owned licences] that wish they hadn’t joined.
“We will now go through a period of deconsolidation.”
The announcement comes despite research released by Roy Morgan in mid-2013 suggesting consumers are confused about the levels of institutional ownership of financial planning groups.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 20 Jul 2018CPA shuts financial advice divisionBy Reporter
- 20 Jul 2018Don't neglect AI, advisers warnedBy Tim Stewart
- 19 Jul 2018AMP unveils new in-house training programBy Reporter
- 19 Jul 2018Self-licensed adviser cops 4-year ASIC banBy Reporter
- 19 Jul 2018Hub24 to launch new core offeringBy Reporter
- 19 Jul 2018SMSF sector warns about advice ‘exodus’By Miranda Brownlee
- view all