In a statement to the ASX, YBR executive chairman Mark Bouris said YBR franchisees will still be able to distribute wealth products and give wealth advice to their existing and future clients but will be done under a separate AFSL with one or more third parties.
He said this will result in a headcount reduction to the overall business, with a clear objective of significantly reducing the cost to income ratio of the business.
“Going forward, the cost of maintaining YBR’s AFSL and associated compliance functions and liabilities would then no longer be borne by the YBR Group,” Mr Bouris said.
“The restructure of the wealth business is expected to significantly reduce our cost base, allowing us to run a leaner and more cost-effective organisation.”
Mr Bouris said he would oversee the transition of YBR to its “new streamlined business structure”.
In addition, Frank Ganis would step down as group chief executive to a part-time role where he will consult to the group on a number of initiatives, including building its securitisation program and funding partnerships, growing its brands, continuing operational and customer service improvements and industry advocacy.
The government and the regulators have screwed the financial planning industry right up. No one will touch this gig with a ten foot pole. Well done FPA you useless maggots
[quote=An]The issue lies in the first line – YBR will still be able to distribute wealth products, if this is how they think the world works now I am not surprised they did not fold earlier[/quote][quote=An]The issue lies in the first line – YBR will still be able to distribute wealth products, if this is how they think the world works now I am not surprised they did not fold earlier[/quote]
I could not agree more, how long will it take for corporations to move away from the mindset that “Wealth Products / Distribution” is financial planning! Beggars belief
So the pink diamonds are on the YBR APL. ???
You would have to assume they are as Bouris is promoting them as an investment opportunity……or is this just seen as ” general advice ” when you are in effect being paid to promote an investment opportunity ?
This whole world of general advice is a complete F***k up.
Then again commissions are great , write a loan and sit back and get trail for years . I’m still getting them off old loans written via a third party for years now , no ROA, SOA Nothen …. Suck it up Lifey’s -ASIC and the Govt dont give a SH?.T.. Pity the FPA is moving behind the scenes and failing , while Mortgage brokers make a big noise upfront and are allow to get Trails forever !!!! ..
Holding an AFSL may have conflicted with the ability to earn an income endorsing pink diamonds and off-the-plan apartments, so a logical choice.
Having seen the internal workings of the YBR planning side of things, its about time they shed this. It was done very poorly, is a compliance nightmare and is basically a ‘risk’ factory.
Mortgage brokers are somehow allowed to flog junk insurance to their clients under so called “general advice”. They get paid much the same insurance commission as a licensed adviser who recommends a high quality underwritten product.
Why would any mortgage broker bother with an AFSL? (Or any accountant for that matter). It’s much easier to give unlicensed insurance, investment and superannuation advice because there’s no education standards and no regulatory scrutiny.
The issue lies in the first line – YBR will still be able to distribute wealth products, if this is how they think the world works now I am not surprised they did not fold earlier
” Your fired”” Mr Bouris ……..Sorry ,we thought we were a mortgage broker , then a financial planner then advisors ? Not sure what what we are or were but is there something at the end of the Yellow Brick road !!!!
Also read as. Financial Planning is no longer a viable business, it is too risky, too expensive to run and a compliance minefield. It is not possible to operate and be compliant, it is just impossible unless you wish to work like a drone ticking boxes that make no sense and charge your clients thousands of dollars for compliance rather than advice.
Can’t blame you one bit Mark. Like all the banks and many many experienced financial advisers, you can see the death of this industry and the madness of its changes.