For some, talk has centred on the federal government’s reforms and the survival of those who will struggle with changes to their business models and the like.
Others have focused their attention on the opportunities, with consolidation within the dealer group and smaller licensee sector tipped to gain further momentum.
However, interestingly, quite a few have expressed the view that, well, nothing much has changed. For these participants, the mindset is that reforms will come and reforms will go, yet the stability in their business will remain.
One reader in particular made some rather pertinent points about being a smaller player living amid reform.
The reader, who wished to remain anonymous, is a chartered accountant with his own practice and own licence. He said amid the regulatory change and possible fear mongering of independents, he’s feeling “pretty perky”.
The accountant questioned the state of the advice industry and how could a small chartered accounting firm survive with all the consolidation and the big four accounting firms in “today’s world” over the past 30 years.
He said one way was by keeping his compliance under control by using a solicitor who uses an online compliance system, and so is able to undertake a compliance audit every year separate from the financial audit, thus keeping his costs under control.
“I do not want to get too big as a practice. I am more concentrated in a small number of large clients,” the accountant said.
“Do I want more clients? Absolutely. But the right ones. We have about $90 million under management, mainly direct equities, cash/fixed interest and a little property in the portfolios.
“But I think people want ‘service at a fair competitive price’. My firm does not want to get too big. But it must have a ‘culture of service’. I think if you do that you get good long-term clients, both medium and very large.”
While the accountant is certain on the business and client front, he also does not fear any government reforms, instead believing, like others, the reforms present opportunities.
“I do not fear any government reforms . there is an enormous opportunity out there for an independent AFSL (Australian financial services licensee) with no platform, no volume bonuses, no commissions, no non-cash benefits.”
