Almost three-quarters of clients placed into a super product by an institutionally-aligned adviser are put into in-house funds, new data from Roy Morgan has shown.
In its latest Superannuation and Wealth Management in Australia report, research firm Roy Morgan found super products recommended by AMP, Commonwealth Bank, NAB, Westpac and ANZ-aligned advisers is more likely to be an in-house product.
Speaking to ifa, Roy Morgan industry communications director Norman Morris said on average, 74.9 per cent of super products recommended by the major institutions’ advisers was their own.
“74.9 per cent of people getting a superannuation product through a planner will end up with a product from that planner,” he said.
“There’s a definite bias, now whether that’s against the customer’s interests or not is another whole point.”
This average encompasses all the brands owned by the major institutions.
The firm’s research also found that many clients are unaware of dealer group ownership structures, with many mistakenly believing dealer groups owned by major institutions are actually independent.
Mr Morris said this is especially true with businesses whose names bear little resemblance to that of their owner.
“Basically, if the name’s different [clients] don’t know who the parent is,” he said.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 13 Dec 2018AFA picks apart CPD policy from FASEABy Adrian Flores
- 12 Dec 2018FASEA confirms accreditation processBy James Mitchell
- 12 Dec 2018Aussie advice business partners with Bank of IrelandBy James Mitchell
- 12 Dec 2018Industry association aims to reverse 'crippling' LIFBy James Mitchell
- 11 Dec 2018ASIC cancels AFSL of Queensland groupBy Eliot Hastie
- 13 Dec 2018ASIC lengthens transition period for fee disclosuresBy Adrian Flores
- view all