The movement of financial advisers away from institutional licensing is a structure trend that is here to stay, says former MLC boss Steve Tucker.
Speaking as part of a panel at the inaugural IFA Convention in Sydney, Koda Capital chair and former MLC chief executive Steve Tucker said the current shift of advisers towards independence is unlikely to see a reversal.
“This is not the first cycle of IFA-mania we’ve seen, if you go back to the ‘90s IFAs were out and about and it was generally driven by smart business people who realised that they were valuable from a distribution perspective, but it was very product driven,” he said.
“This time I don’t think it’s cyclical, I think its structural, I think its being driven by the client who’s decided certainly in greater numbers today and ever greater numbers from here, that it’ll be [in their] interest to seek independent advice.”
Waterfall Way Associates director Dacian Moses added that changes within the attitudes of both advisers and clients were also influencing the transition.
“I see it as part of the new profession of financial planning that’s emerging from what was previously product distribution, there’s that element as well as a more informed consumer that’s looking for advice over just product that’s a factor here,” he said.
“Those that aspire to that professional status are looking for an environment where they can practice as a professional, and increasingly the place for that is smaller boutique operations.”
Former CEO of ING Direct Vaughn Richtor will assume the role of chairman at MyState following the retirement of Miles Hampton, the compan...