The number of financial planners working under a bank branch has dropped, while more are working for a self-licensed practice, according to new statistics.
This year, 9 per cent of financial planners said they worked for a bank branch, down from 13 per cent in 2012, according to the 2015 Investment Trends Planner Business Model report.
Meanwhile, 15 per cent of planners in 2015 are working for a practice with its own AFSL, up from 10 per cent in 2012, the report said.
Speaking to ifa, Investment Trends head of research Recep III Peker said these figures provide direction for dealer groups that wish to meet advisers' needs.
"Our planning practice lifecycle model shows the needs of financial planners and their respective practices evolve over time," Mr Peker said.
"So dealer groups need to evolve the support they provide and emphasise different strengths as planners grow in clients, FUA and sophistication. Those who can do this right are able to retain relationships, while others see their planners grow and chase greener pastures elsewhere."
Nevertheless, more financial planners are aligned to a bank than are not – a statistic which has remained steady in the past few years.
About 56 per cent of financial planners are aligned, compared with 44 per cent who are non-aligned, the report said.
Mr Peker said the main reason this has not changed is that aligned businesses have been acquiring independent and non-aligned businesses.
"Otherwise [non-aligned] businesses would have grown," he said.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 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
- 19 Jul 2018Product issuers to be held accountable under new regulationBy Reporter
- 19 Jul 2018Advisers should ditch ‘tarnished’ bank brandsBy Tim Stewart
- view all