Thousands of financial advisors could leave the industry or migrate from vertically integrated, bank-owned firms to non-aligned businesses, such as accounting firms, which are regarded by consumers as a more-trusted source for advice.
A 'new world' where planners and accountants merge resulting in higher standards of ethics education, and advice, that is paid for by the client through a mixture of fee for service and success based.
Traditionally, advisers have been under the employ of banks - with targets to sell their products.
According to ASIC , about 44 per cent of an estimated 25,000 licensed advisers are controlled by the largest 10 financial institutions.
On July 1 , Westpac is exiting their personal financial services business - and more than 700 financial planners will be in the market looking for new jobs or careers.
Advisers and Accountants should not be focussed on selling a particular product where they are conflicted - but should focus on the best product or service that is available tailored for each specific client.
It’s all about trust, and those financial planners that adhere to the highest standards of ethics, independence, education and advice will be well rewarded!
Can independence be achieved if commissions are received by institutions vs clients?
My view is yes - if those commissions are properly disclosed.
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