Financial advice exit a boon for the industry: Poll

The big four banks exiting financial advice received a resounding welcome from the industry, according to a new survey.

The majority of respondents (62%) polled in Financial Standard's sister publication FS Advice agreed the move will have positive ramifications for financial services.

One-in-four (25%) participants said only time will tell what type of effect the demergers and sales will have on financial advice.

As it currently stands, CBA is delaying its planned demerger but said it remains committed to exiting wealth.

The OnePath/IOOF transaction is on ice pending the outcome of the APRA investigation, while NAB is reportedly hunting a buyer for MLC.

Westpac, the last of the major banks to join the exodus, agreed to sell a number of advisers to Viridian Advisory.

Financial Standard broke the news in March that Westpac will no longer provide personal financial advice and shift to a referral model; it will also reposition BT Financial Group as a standalone division.

In handing down the banking Royal Commission final report, Commissioner Kenneth Hayne stopped short of dismantling vertical integration.

Hayne said the forced separation of financial advice and companies that sell and manufacture financial products "involved significant disruption" to the industry and the financial services industry more broadly.

This is despite Hayne recognising that conflicts of interest would likely be reduced by separating AFSL holders authorised to issue financial products and AFSL holders authorised to give financial product advice.

The new poll asks: What was the highlight of the 2019-20 Budget?

Read more: Financial StandardWestpacAPRABT Financial GroupKenneth HayneMLCRoyal CommissionViridian Advisory
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