A broad portfolio of wealth management services is necessary to attract Australian investors

The wealth management sector in Australia is experiencing rapid growth. Consequently it has become a target market for many international players, as well as domestic competitors looking to expand. However, providers of wealth management services need to offer a flexible portfolio, which appeals both to the self-governing investor as well as to those who require more financial guidance.

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Australia extends FoFA implementation period to July 2013

Following discussion in the House of Representatives, Bill Shorten, Minister for Financial Services, has announced that implementation of the FoFA changes will be extended until July 1, 2013. This has created a much-needed grace period for industry players.

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Australia: Fee Disclosure Statement reforms will lead to higher barriers for consumers

Very significant changes will hit the financial advice industry when the FoFA reforms are enacted on July 1, 2012. One crucial aspect of the legislation, which is still highly controversial, relates to the introduction of FDS reform. In particular, the measures designed to increase transparency appear to be in conflict with the aim of increasing access to professional financial advice.

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Australian government considers the delay of financial advisor commission reform

The Australian government is considering a proposal from the financial advisor community to delay reforms aimed at eliminating commission and aligning financial planners' interests with those of their customers. If these industry demands are met, new legislation will be deferred for a year until July 2013, allowing financial advisors to amass a further A$150m.

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Axa: going for brokers?

Axa CEO Nicolas Moreau has admitted that the company is looking into buying a commercial broker, giving rise to speculation that Axa might use such a purchase to grow its share of the SME insurance market. A broker acquisition would also make sense for the insurer as a means of diversifying its revenue stream by securing a presence in areas complementary to its current offering.

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Barclays' preparations for the RDR may be replicated by other players

The UK-based financial services player Barclays has announced that it intends to close the financial planning arm within its retail division, making it the first major bank to make such a decision in light of imminent regulatory change. If other large retail banks follow suit, then the proportion of the public that are underserved by financial services will increase.

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Consumers' needs must be central when approaching a move to fee-based advice

Any move by national markets toward a fee-only model of advice, such as in the UK as a result of the RDR regulation, will result in a massive shake-up. There has been much discussion surrounding advisors' attitudes to this change in the UK; however, consumers' opinions need to be put at the center of any new strategy if it is to be successful.

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Datamonitor's IFA survey reveals the effect that RDR regulation is having on many advisors

With just over a year to go until the RDR is implemented, many IFAs are worried about their future within the industry. Datamonitor's research shows that 20% of advisors expect to see the IFA market decline over the next six months, and over two thirds of advisors still obtain less than a quarter of their business through fee based activities.

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Europe: distribution review to tackle volatility in fund and asset management industry

The European Fund and Asset Management Association has announced its intention to hold a strategic review into how products are distributed in order to tackle high flow volatility. The current distribution patterns, concentrated around banks, lead to distortions and to address the situation, Europe must encourage the emergence of an independent advice industry that is well qualified and fee-based.

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European financial advice: small is beautiful

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