Infocus today welcomed the issues raised by the Financial System Inquiry relating to the proposed adviser register and ASIC’s proposal of a ‘restricted advice’ label. These measures, if introduced, will help to bring transparency to the financial advice market for consumers.
Infocus Managing Director Rod Bristow said “The core message raised in submissions to the Financial System Inquiry is one of transparency. Infocus supports this 100%, particularly relating to creating clear differentiation between independent and aligned advice. This is critical in rebuilding trust in the advice industry”.
“As we’ve said many times, healthy competition demands a diverse market structure. This includes a mix of independent and aligned financial advisers”, he said. “Making the ultimate holding company of a Licensee clear for consumers will enhance consumer understanding of their advice and product relationships”.
Recent research published by Roy Morgan showed most clients are unaware their dealer group is aligned with a major financial institution: with the trend increasing toward consumers being even less aware of who owns their dealer group. Commenting on the research findings, Bristow said “It’s hard to believe with all the recent media surrounding the industry that consumers aren’t doing their homework on who their adviser works for. We don’t think it’s appropriate to have consumers wading through complex web pages or having to read the fine print in their FSG to determine their advisers’ employer”.
Bristow said the Infocus group, now including PATRON Financial Advice, is a fantastic alternative for advisers in the market seeking independence. “Infocus and PATRON take a partnership approach to working with advisers. We help our advisers manage the core issues of delivering outstanding service to clients in today’s regulatory environment; effectively managing risk; enhancing revenue; and lowering cost. Importantly, we actively work with our advisers to ensure these aren’t mutually exclusive: developing business, marketing and training plans, supported by our proprietary software for maximum efficiency, as a core part of our dealer group offering”, he said.
“Following completion of the PATRON merger last month, we have truly national reach with corporate offices and support staff in all states and Territories except Tasmania and the NT. The combined strength of Infocus and PATRON offer advisers genuine choice and market- leading support for their business”, Bristow said.
