Login
ISCOVER
Samantha Hodge
Financial planning groups have been urged to consider combating the future of financial advice (FOFA) changes by taking a closer look at the broking industry.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Speaking to sister publication InvestorDaily, Centurion Market Makers chief executive Chris Wrightson said over the next five years he can see an obvious synergy between planning and broking businesses.
“Our view is that if you look forwards five years you’ll see [planning and brokering] businesses converging and trying to service each others customer base because it’s all about trying to make more money by delivering more services to your customers,” Mr Wrightson told InvestorDaily.
“We say, if you’re a planner providing planning services, maybe you also need to provide brokering services to your clients as well.
“The easiest way to do that is find an experienced finance broker and get them to do the work for your client base but then also vice versa, providing financial advice to his clients,” he said.
He explained that in an environment where disaggregation in the planning industry has started and practices are beginning to move away from institutional licensees and return to boutique self licensed entities, expanding the business model and adopting a horizontal approach is critical.
There is also the pressure that the impending FOFA reforms due on 1 July next year will place on planners’ bottom line.
“FOFA is making it harder to make money by removing revenue schemes that were previously in the industry so then businesses have to adapt,” Mr Wrightson said.
