Matthew Smith and Tahn Sharpe
AMP, CBA, IOOF and NAB MLC’s disclosures provide more detail regarding the go-forward advice strategies of the country’s largest institutions, offering the best view yet of what the new advice world might look like.
The nation’s second largest licensee owner is getting ahead of likely legislation and rolling out plans to service clients on yearly terms, according to general manager of advice Darren Whereat.
Westpac will retain the BT brand, however BT Financial Group will no longer exist as a stand-alone division while aligned and salaried advisers will either join boutique licensee, Viridian, or become self-licensed.
The bank’s annual results also revealed net cash outflow of $3.968 billion from Australian wealth management, compared with $931 million net cash inflows the previous year.
The disintegration of the institutional wealth advice model is happening. The banks are announcing sell-offs, spin-offs and divestitures of their wealth management businesses.
The fall of Dover Financial Advisers could mean second thoughts for firms considering self-licensing or a second-tier licensee, Morgan Stanley’s Daniel Toohey says.