The impact of the impending Future of Financial Advice (FOFA) reforms are causing a dip in confidence in the market. Bennelong Funds Management (Bennelong) chief executive said.
Jarrod Brown told InvestorDaily that although the reforms are not changing the way the fund manager is doing business, Bennelong is keeping watch on any potential impact it may have.
Brown said the regulatory change and its associated uncertainty impacts Bennelong because of the damage it gives to investor and adviser confidence.
Advisers are uncertain about how FOFA will affect their business.
Once the reforms have passed and there is more clarity, it will have a positive impact on asset management, he said.
“For me, it doesn’t change anything we are doing. We certainly have an ongoing watch status, what implications are for relationships with platforms and dealer groups etc. But it hasn’t really changed anything in our core business and isn’t likely to,” Brown said.
“What we are monitoring is any an impact on price, any impact on access. We have an ongoing concern of concentration of power and regulatory change could lead to a concentration of power, so that’s the area of concern for a boutique fund manager.”
