Dealer group researcher Andrew Wheeler has found dealers are losing money, no matter what their size is, as they struggle to meet the costs of the growing demands of planners. Unless there is a corporate parent or someone who wants the adviser network for distribution purposes, there is a limited reason for wanting to start a dealer group.
However, Fenning believes there is a different proposition that may work for advisers and is end-client driven. We’ve all been waiting for the next great thing to hit the industry and if Fenning holds the secret, we can only wait with bated breath to see how it can be effected.
Of course, as clients become more educated and the adviser proposition becomes more transparent, things are likely to change. Advisers will have to change their proposition to a more niche offering and choices will be made on fees as well as products and services available.
It is likely that once clients are more aware of their power, changes will have to be made to platforms and clients having the flexibility to change advisers and platforms without tax implications to their investments.
For the cynical, perhaps it’s a case of a little knowledge being a dangerous thing as clients become more educated about their financial options, but in the long run it will assist in the financial adviser’s role becoming that of a respected professional.
