Stockbrokers are increasingly adopting the professional traits of comprehensive financial advisers, according to Xplan parent company Iress.
Speaking to ifa, Iress chief executive Andrew Walsh noted that ASIC has been using the same language to describe its expectations concerning retail stockbrokers as it has concerning financial planners.
In addition, the bookkeeping and record keeping requirements of stockbrokers are very similar to those of planners, Mr Walsh said.
“It’s not okay for stockbrokers to just record they have put an order on for a client, and then to check their risk profile in real time,” he said. “It’s much more [important] to align that to their objectives and what else is in their portfolio, as well as prior advice [received]."
Stockbroking businesses are increasingly diversifying into wealth management, he added.
“From a retail broking side, they’re talking much more about the client than the account,” Mr Walsh said. “They’re talking about how to access other participants in that family, not just the client that they have."
Iress group executive for financial markets, Matt Rady, said the biggest challenge for stockbrokers is remuneration.
“They would love to see their 50 per cent payout commission models evolve, but they can’t afford to put their existing revenue at risk,” Mr Rady said.
SUBSCRIBE TO THE IFA DAILY BULLETIN
24 Jan 2018CBA compensation payout hits $6.87m and risingBy Staff Reporter
23 Jan 2018Financial advice changing of guard ‘positive’By Staff Reporter
23 Jan 2018Royal commission, best interests duty and 2018 outlookBy Staff Reporter
23 Jan 2018Advisers challenged by geopolitical climate: reportBy Staff Reporter
23 Jan 2018ASIC to shadow shop mortgage brokersBy Annie Kane
22 Jan 2018Consumers less confident buying insurance onlineBy Staff Reporter
- view all