More than 75 per cent of industry participants expect independent financial advisers to outnumber institutionally-aligned advisers in the near future.
Respondents to an exclusive ifa straw poll have indicated their bullishness on the growth of the IFA movement, with the vast majority anticipating an imminent and significant shift.
Of the 1,464 respondents, 50.3 per cent indicated they think IFAs will outnumber aligned advisers within the next two years, while 23.7 per cent said it is more likely to occur within the next decade and 3.8 per cent suggesting it may take 20 years.
Less than one-quarter of respondents (22.2 per cent) said that IFAs will “never” outnumber the institutionally-aligned sector.
Speaking to ifa, adviser Katerina Sousalis of boutique Modoras Financial Performance said that while it is difficult to predict the future, she anticipates the “pendulum to swing to the independent space”.
Lachlan Harvey, an adviser with self-licensed South Australian firm Goldsborough Financial Services, said that we are “well on the path already” if you adopt a definition of independence as “client-focused and ethical” advice, rather than the strict definition in the Corporations Act.
By contrast, Michael Radalj of Your Private Advisers – a member of the IFAAA and supporter of the Corporations Act definition of independence – said he thinks the chances of an independent majority are slim.
“I believe a large proportion of advisers are too motivated by commissions to simply walk away from them,” Mr Radalj told ifa. “For many, there is too much of a financial sacrifice to make such a change worthwhile.”
Fellow IFAAA member Simon Duigan of Core Independent Financial Advice told ifa that the size of the IFA movement is not a major issue.
“Whether it does happen, or when, is in some ways irrelevant,” he said. “I want to see us develop into a profession, and one that is trusted. For that to occur I feel that advisers need to connect, communicate and collaborate more with their clients.”
To take part in the latest ifa straw poll please visit: https://www.ifa.com.au/polls/43
The corporate regulator addressed concerns with the new regime.
The digital solution has launched.
The digital platform for financial advisers and accountants has confirmed the new appointment.
Get the latest news! Subscribe to the ifa bulletin
Get notifications in real time and stay up to date with content that matters to you.