by Susan Edmunds
Peter Cave, of Camelot said he had been approached by three or four adviser groups over the past month or two wanting to get together to share resources and help deal with compliance requirements.
He said the changes looming for those who provide DIMS would make that more likely. Many might find it easier to join an organisation that could be licenced to offer class DIMS, and then operate beneath that, he said. “We have 30 advisers so there’s a benefit to having a class licence and having the advisers operate under that.”
Amalgamation and co-operation was an ongoing trend, he said. “Individual advisers are struggling to keep up with everything and are looking for homes, institutions to help them or bigger partnerships.”
Camelot has decided it will need to hire a full-time compliance officer next year.
Adviser Jeff Matthews recently left Spicers but said he would not be going solo.
“The problem with regulation is that it’s making simple transactions a lot harder. I’ve seen advisers turn down clients with $150,000 or $120,000 to invest because they lose money on those clients.”
He said the industry was still grappling with regulation and compliance.
“I’d hate to be out on my own, trying to see clients, remain compliant and get all the education credits you need. I think in future we’ll see larger practices and banks and then boutiques, but the ones in the middle are going to get squeezed.”
Many older advisers had found the enjoyment of their work was gone, he said, and were looking to retire. “It’s going to be an issue, there aren’t enough people. Banks might train up advisers but if someone is 50 or 60 and has a nice home, $1 million in investments, they won’t want advice from a 30-year-old with no life experience.”
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