The big four banks and AMP have experienced “significant market share loss” in the super and financial advice sectors, which Bell Potter analysts have tipped as a long-term trend.
According to a market commentary by Bell Potter analysts Lafitani Sotiriou and James Filius, seen by InvestorDaily, the diminishing influence of the major banks and financial institutions in the financial advice and superannuation market is a noteworthy trend for investors.
“The move away from the large incumbents (four major banks and AMP) continues, with these five players losing over 400 advisers in the last six months,” the analysts wrote.
“This trend to independence is a key theme in the sector and we believe it is set to continue.”
The document explains that significant adviser losses at AMP are a concern for the company, alongside retail and corporate superannuation losing ground to SMSFs.
“These trends are major headwinds for AMP,” the document states.
In addition to AMP, which has lost 400 advisers in a six-month period, BT, Westpac, ANZ and NAB have also seen declining numbers, indicating a total decline of 1.8 per cent of market share in the financial advice industry.
IOOF and CBA were found to have bucked the trend with minor increases in adviser numbers over the same period, the analysts explain.
Bell Potter has also tipped greater consolidation in the mid-tier licensee market following Beacon’s acquisition of Libertas and Easton Investments’ acquisition of GPS Wealth.