Many benefits to going your own way: CMC Markets

CMC Markets Head of Partners and Institutional APAC, Andrew Shade has commented on the benefits of financial advisers moving away from large financial institutions following the Royal Commissions.

He highlighted three key benefits that are driving the trend towards independence.

One of those is increased revenue - Shade said a typical CMC partner who is an indirect participant, not aligned with a major institution, could retain up to 70% of revenue as compared to advisers who are aligned to ASX participant.

Shade said: "The independent advisers are happier, and their clients are happier, because they're able to provide a much more holistic service."

Of the independent financial advisers Shade works with at CMC Markets, he explained an in-depth due diligence process is part of what they must be prepared for.

He explained CMC Markets only works with advisers who align to its values.

"We need to know that they are compliant. We need to see that they run a completely clean book," Shade said.

By that, Shade explained CMC Markets wants to be able to see that advisers are behaving ethically at all times, maintaining a customer focus and not taking part in any price gouging or churning.

"We want to be the trusted adviser to the advisers - we want to see the independent advisers we work with flourish and they are," Shade said.

"When you talk to a lot of these advisers who are doing really well independently they'll often say the best thing they ever did was walk away. They're happier than ever."

While some independent AFSLs have struggled to keep up with compliance costs and educational requirements since the Royal Commission, Shade said there is another breed of independent adviser flourishing.

"For strong, confident advisers right now going out on their own is actually a better business proposition," Shade said.

"Where the big institutions used to offer something, they're now a bit of a burden. They can stand in the way of good advisers giving really client-centric advice because the world of products and investments you can advise on narrows."

Read more: Royal CommissionAndrew ShadeCMC Markets Head of PartnersInstitutional APACASX
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