There will be no need to overhaul existing businesses following the announcement of government reforms on financial advice, three independent financial services firms have said.
Last week, Minister for Financial Services and Superannuation Chris Bowen announced a number of reforms to financial advice, including a ban on commissions and volume-based payments and a fiduciary duty for advisers.
Count Financial, Prime Financial Group and DKN Financial Group announced no substantial changes to their businesses.
Large, non-aligned businesses will be better placed to benefit from the regulatory changes, according to Count chief executive Andrew Gale.
"We actually believe the regulatory changes will accelerate and accentuate the consolidation in the non-aligned space. So given we're the largest independently positioned organisation in that space, we see that as being a plus," Gale said.
The changes will be a positive for the industry and should encourage more clients to have the confidence to seek advice from qualified advisers, according to a Prime Financial Group statement.
Prime Financial Group said the business is "already structured to support the changes proposed by reducing its reliance on wraps, master funds and managed funds, preferring a more cost-effective and direct relationship with clients using direct equities".
For DKN, the proposed reforms are not likely to have a material financial impact, DKN Financial Group chief executive Phil Butterworth said.
Butterworth said the firm's current fee structure is consistent with the reform agenda to eliminate fees that entailed conflicts of interest.
"Fees generated [by DKN] do not give rise to the conflicts of interest described in the reforms because the distribution activities undertaken by DKN do not involve the provision of any financial product advice by DKN," he said.
He said given the firm's equity holdings in several dealer groups, including its wholly-owned business Lonsdale Financial Group, it will need to consider the "ramifications" of the proposed reforms, including the fiduciary obligation and adviser remuneration.
"DKN does not believe the financial impact of the proposed reforms on these practices will be material," he said.
