Synchron director Don Trapnell said that institutions which own licensees and manufacture products for distribution by their own advisers are “seriously conflicted” and that advisers will be looking to move to other business models.
“It’s fair to say some advisers left independently-owned licensees during the GFC to go to licensees owned by large institutions; they will now return,” Mr Trapnell said.
“This is because more discerning advisers want to provide advice that does not kowtow to an institution and more discerning clients want to know that the advice they receive is not biased towards the products manufactured by an institution which also owns the adviser’s licensee.”
For less discerning clients, Mr Trapnell said that the ownership of an AFSL should be clearly explained at every opportunity as well as all documentation provided.
Institutionally-owned licensees may not be making it clear to their clients the relationship between their licensee and the product being recommended, he added.
“I believe institutionally-owned licensees may not be currently providing enough guidance to their advisers on this issue, nor encouraging them to have open and frank discussions with their clients that clearly explain the relationship between the licensee, the adviser and the products being recommended in terms the client really understands” Mr Trapnell said.
“Of course, if an adviser is an authorised representative of a licensee that is not owned by a product manufacturer, this conversation never has to take place at all.
“We encourage the regulator to look deeper into the vertical integration issue, particularly in view of the best interests duty provisions of the Future of Financial Advice legislation,” Mr Trapnell said.
BMac, what is the point of your question? Don Trapnell, like anyone else has the right to pay for advertising space where he sees fit. To my knowledge, he doesn’t pay for any advertising space with this publication. He does of course have the right to express his views, just the same as you have.If you disagree with Don’s or anyone elses opinion,you can express that. But you shouldn’t make false allegations or innuendo not based on fact, particularly when it appears personal. Incidentally with regard to your “shallow offering” comment, I have been an adviser for 25 years now and with Synchron for over 10 of those years so I suggest that speaks for itself.
I have been at Synchron for over 12 years both as an Adviser and as Qld State Manager. No Synchron do not pay for space in publications. The Financial press print article of Dons based on merit. If one takes time to read these articles one would note Dons articles are always pro the Adviser. After all Synchron prides its self as Advisers for Advisers, all Directors and Managers are still active Advisers…
In response to BMac’s comments. His/her remarks about Synchron’s ‘shallow offering’ doesn’t hold water. Synchron is the only licensee paying commissions/fees daily. What’s shallow about that?
As well, Don Trapnell frequently adds his voice to adviser concerns, far more so than any other dealer group principal that I can think of. What’s shallow about that?
Finally, Don’s doing of this isn’t about self-promoting. It may work in his favour, but the points he makes benefit advisers, not just Synchron advisers, but advisers in all dealer groups to get a better hearing, a fairer go. What’s shallow about that?
I agree with Don Trapnell. If we are to become more transparent as an industry then those advisers who are licensed through aligned dealer groups need to clearly state their affiliations. I hope Synchron keeps speaking up, someone has to!
I joined Synchron 2 years ago, and when I did, the fact they are not institutionally owned was definitely a consideration – I love that I can now say to my clients that I’m under no obligation to recommend any particular product to them, nor am I pressured by a third party to do so. My recommendations are base solely on what I think is right for them. With all the negative press about how dodgy all advisers are, this is important to me, and I believe my clients appreciate this too.
Different licensees suit different advice businesses and Synchron is just right for me. I also appreciate their efforts in raising awareness of issues that are important to many advisers in the industry press.
Does Don Trapnell and his organisation pay for advertising space in IFA? Given the amount of free self promoting articles pumping his own interests as if they are fact he should be paying. Synchron has a pretty shallow offer when put under the microscope.