Government reforms targeting financial services will bring long-awaited confidence back to the industry, according to Aberdeen Asset Management.
With the Future of Financial Advice (FOFA) and MySuper regulations coming into force this year, the asset manager has said the changes will be positive for the industry.
"Regardless of your views on these pieces of legislation, the implementation will provide a degree of certainty for the industry, which has been lacking for many years," Aberdeen Asset Management managing director Brett Jolie said.
"The Stronger Super and FOFA legislation should result in increased transparency, accountability and professionalism for both the superannuation and advice industries, which in turn will improve the level of consumer confidence in the wealth management industry."
Compliance with the initial requirements of both sets of reforms will become mandatory on July 1 this year and Aberdeen has said the regulations will remain a focus for much of 2013, although the impacts for the industry will be long term.
Consolidation, insourcing of research capabilities and a downward pressure on fees are just some of the outcomes Aberdeen has predicted as a result of regulation.
"A key impact of this legislation is the consolidation of superannuation funds and financial advice groups: fewer but larger superannuation funds will provide greater economies of scale, to the benefit of members," Mr Jolie said.
"Looking to the financial advice industry, the elimination of conflicted remuneration structures, elevated education standards and a specific requirement to act in the best interests of clients will enhance the professionalism of the advice industry," he said.
"So we expect 2013 to be a year of change in the industry."
