Advisers are now more proactive in making business decisions following the Hayne commission, platform provider XPLORE Wealth has said in response to seeing growth in interest from the sector.
Tony Nejasmic, head of distribution and marketing, said there has been a “significant pick up in the business” following the examination of the finance sector.
Although it is selling off its advice business, Westpac has also seen sizeable growth within the sector in relation to its investment platform BT Panorama.
In its financial results for the March 2019 half, the bank reported a 45 per cent rise in the advisers using it year-on-year, which now sits at 2,291 advisers.
“What we did see prior to the royal commission was a wait and see attitude from financial advisers and businesses, they weren’t making decisions. They were taking a wait and see,” Mr Nejasmic said.
“What we’ve noticed post royal commission is there’s really been a marked pick up from advisers and clients to say look now we’ve got some kind of clarity from the royal commission, we want to see how we run our business and is there a way we can run our business faster, smarter and better.
“We have seen a significant step up in interest from the market in our business.”
Mr Nejasmic added that XPLORE had seen an increase in adviser interest in international exposure in their portfolios.
“So they really are taking more of a global view and they are looking for platforms and providers who can help them asset allocate into those sectors, whether it’s building model portfolios of international funds or picking specific stocks such as Facebook or Amazon or Berkshire Hathaway,” he said.
The company is launching its Investment Wrap Super and Pension Wrap in the next month, targeted at independent financial advisers and stockbrokers. The platform has a multi country offering with multi-currency capability.
“Change, choice and regulation remain the biggest things in this market and that will continue for the foreseeable future,” Mr Nejasmic said.
“In relation to the superannuation environment, it’s a lot more onerous for an adviser to meet the fee for no service issue. You can only charge a fee for what is related to superannuation.
“That one is going to play out a little further for unbundling of fees.”
XPLORE has $13.3 billion in assets under administration, including $2.6 billion in direct international securities, as at 28 February.
In comparison, Netwealth FUA reached $21.1 billion as of 31 March, while HUB24 FUA hit $11.5 billion at 31 March.
FASEA has come under scrutiny from a parliamentary committee for its treatment o...
ASIC must overhaul the way it engages with advisers to focus on proactive educat...
ASIC needs to work harder and more efficiently if it wants to reduce fees and im...