Lonsec is looking to help financial advisers transition away from conflicted advice models by acquiring their in-house managed portfolios.
Lonsec is offering to purchase in-house managed portfolio solutions from advice licensees, allowing advisers to focus on providing advice to their clients without being conflicted.
Lonsec's offer will see the firm acquire the investment management rights from existing managed account providers, while licensees retain the flexibility to use their own branding, investment mandate and platform. Alternatively, they can move to Lonsec's managed portfolios.
The firm said it was becoming increasingly difficult for advisers and licensees to charge portfolio management fees for in-house managed accounts.
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It also noted ASIC is investigating the integrity of managed accounts constructed by advice licensees who may not have the same expertise or resources to act as investment managers.
With advisers aware of the need to remove conflicts from their advice following the Royal Commission, Lonsec said outsourcing managed accounts was becoming more popular.
"The Royal Commission may have stopped short of a ban on vertically integrated or conflicted financial advice, but advisers know they need to start moving quickly in this direction to meet community expectations," Lonsec chief executive Charlie Haynes said.
"An outsourced managed account solution is becoming increasingly popular, not just in order to reduce conflicts but to allow advisers to focus on their clients' needs and aspirations while leaving the investment process to specialised portfolio managers."