Big fish plans to swallow little fish
Independent advisers’ pain could become Macquarie Private Wealth New Zealand’s gain, with small advisory businesses its main focus as it looks to nearly double its adviser force.
Friday, May 18th 2012, 1:49AM
by Niko Kloeten
Ian Witters, head of Macquarie Private Wealth New Zealand, said it was looking to increase its adviser numbers from 40 currently to “about 70” over the next two to three years.
However, it won’t be hiring just anyone: “We only want to build with people that fit the mould with what we are trying to do.”
The new regulatory regime is the “catalyst” for Macquarie’s growth plans in the wealth management sector, and Witters said advisers working on their own or in small businesses could find working for a bigger firm an attractive proposition in the new environment.
“Regulation comes at a cost and keeping up with the regulations and compliance is something we think smaller organisations are going to struggle with more.
“We do see people reviewing their position in light of that and thinking they may be better if they were part of a bigger organisation that was more easily able to cope with compliance issues.”
Big firms have other potential benefits for advisers, he said.
“We tend to have relationships and tendrils into other parts of the world that can benefit clients.”
However, Macquarie won’t be looking to bring in new advisers to the industry; Witters said its focus is on advisers with an existing client base. There are plenty of opportunities for those still in the industry, he said.
“There were 5000 who considered themselves wealth management advisers before the regulations and there are now 2000 authorised.
“That’s a big drop on the face of it – maybe some of those 5000 weren’t doing much. But there must be a lot of people out there looking for advice.”
Niko Kloeten can be contacted at firstname.lastname@example.org
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