In recent media articles concern was raised about the shrinking number of independent advisory firms operating in Australia and the impact this will have on the type of advice provided to Australians.
Concerns were raised in a recent Money Management article that some 90% of advisory firms are now owned by financial institutions and that these institutions see their advisers as part of their product distribution system.
Furthermore, it was noted that one of the major problems of financial institution ownership can be that certain requirements may be placed on the advisers which conflict with their responsibility to their clients.
“What it does is gives clients less choice because at the end of the day, you’re more likely going to an adviser who’s with a dealer group who’s ultimately owned by one of these big institutions,” eJobs Recruitment Specialists managing director and financial planning recruitment manager Trevor Punnett said in Investor Daily .
“At some stage there’ll be a backlash when markets settle down and customers might trend to someone that is more independent,” he said.
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