A head of a non-aligned firm has highlighted how the exodus of institutional advisers as a result of the Hayne commission could be a net positive for regional areas.
Speaking to ifa, Infinity Financial Advisors managing director Andrew Masson said the Hayne royal commission has exposed the extent of profit focus rather than clients, and thinks this has happened because those making decision in the large institutions have over time seen clients as numbers and revenue lines and have overlooked their obligation to service the best interests of clients.
However, he also said all is not lost and that the majority of financial advisers out there are client focused and will ultimately turn the current climate of doubt around.
“What we’re seeing is a tidal wave of anti-establishment sentiment building, which is driving advisers and consumers away from the large institutions which have provided conflicted advice,” Mr Masson said.
“This is net positive for regional areas like Newcastle as we’ve become a drawcard for amazing talent looking to escape capital cities.”
As for his future outlook on mergers and acquisitions, Mr Masson said he expects a lot of M&A to take place over the next few years, something he views as another net positive especially if it involves the merging of firms that are culturally aligned.
His main concern is more around experienced advisers exiting the industry due to the proposed FASEA standards.
“We’ll see a great deal of experience and knowledge exit the industry and an influx of newly ‘qualified’ advisers enter, leaving a gaping hole for consumers in terms of adviser experience,” Mr Masson said.
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