The number of inquiries from commission-based financial planning businesses looking to sell ahead of the federal government's Future of Financial Advice (FoFA) reforms has increased, industry brokers and buyer advocates have said.
Centurion Market Makers director Chris Wrightson said some practice principals who had been in the industry for a long time were unwilling to go through another significant period of change.
"In comparison to this time last year, I'd say inquiries from commission-reliant financial planning practices would be up about 50 per cent, although keeping in mind things were quieter last year amid the global financial crisis," Wrightson said.
Overall, he predicted there would be fewer advisers in the industry over the next five years and said vendors going to market needed to find the right buyer.
Kenyon Prendeville director Alan Kenyon said he had noticed an increase in businesses coming to market for a number of reasons, but agreed some were influenced by the reforms and not having the passion or energy to take their businesses through another round of changes.
"We are having more discussions with people looking to sell ahead of reforms, but whether they all translate into sales is too early to tell," Kenyon said.
"Because there is still uncertainty around how legislation is going to play out, I think the trend is still emerging."
Radar Results principal John Birt said since April he had noticed a 20 per cent rise in sales inquiries across the board, with the majority around commission-based firms and client books.
Financial Services, Superannuation and Corporate Law Minister Chris Bowen announced the FoFA reforms in April.
Under the proposed reforms, the government has called for a ban on commission payments to financial advisers, with advisers urged to transition to a fee-for-service model.
