tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo close ad
tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, November 30th, 7:17PM

News

rss
Latest Headlines

[The Wrap] Changes in the wind

Whether it was planned or an unintended consequence, regulation is forcing change in the financial advice sector. And vertical integration.

Friday, November 5th 2021, 4:22PM 1 Comment

by Philip Macalister

Two stories in the past week illustrate how the financial advice sector is changing and how, possibly, the days of the small boutique firms are numbered.

Sure two don't make a trend, but there is plenty of anecdotal evidence that change is afoot.

As Good Returns reported, SBS Bank's subsidiary Funds Administration (FANZ) has bought a financial planning business in Invercargill. It makes sense since the bank is headquartered in that city.

But comments from executive director, Graham Duston, that this maybe the first of a number of transactions signals intent. 

Duston said industry consolidation is “on the cards” due to a range of factors such as rising and changing compliance factors and an aging adviser force that was beginning to look at their next stage of life.

Perhaps even more interesting is that Mint Asset Management has its eyes on distribution.

As its founder and chief executive Rebecca Thomas told me, the firm is looking to "own the distribution part of the value chain."

Of course bells will ring for some say no to vertical integration where fund managers own distribution. Just look at what happened in Australia when this occurred, they will say.

There is no doubt the Royal Commission in Australia unearthed some shocking behaviour.

But as Thomas says if Mint buys distribution then its products won't automatically be on the recommended product list. 

She says we can only get there on merit and if the products are "best of breed."

This is little different to another recent transaction. Earlier this year Alvarium, Pathfinder Asset Management's parent, took a stake in financial planning firm Newton Ross.

Newton Ross did not use Pathfinder funds or its KiwiSaver scheme.

While people have rightly learnt lessons from poor vertical integration, it seems there are ways to do it properly.

But the take out is financial planning firms are looking attractive to fund managers. It's a good sign they see distribution as being a profitable business with a promising future. 

There is a place in the market for corporatised businesses, but so too is there a place for the boutique financial advisory firms.

Tags: FANZ Kepler Mint Asset Management Opinion

« Codes must have consequencesSynergy creates portfolio supermarket »

Special Offers

Comments from our readers

On 8 November 2021 at 2:12 pm Dirty Harry said:
"Whether it was planned or an unintended consequence..."

Oh, it was planned.
Intended.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.65 4.35 4.69
ANZ ▲4.79 4.25 4.95 5.35
ANZ Blueprint to Build ▲2.03 - - -
ANZ Special - 3.65 4.35 4.75
ASB Back My Build 2.04 - - -
ASB Bank 4.45 3.65 4.35 4.69
Avanti Finance 4.55 - - -
Basecorp Finance 5.49 - - -
Bluestone 3.74 3.54 3.89 4.09
BNZ - Classic - 3.65 4.35 4.69
BNZ - Mortgage One 5.15 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Rapid Repay ▲4.95 - - -
BNZ - Std, FlyBuys ▲4.95 4.25 4.95 5.29
BNZ - TotalMoney ▲4.95 - - -
CFML Loans 5.15 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 3.59 4.09 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 5.25 4.00 4.60 -
HSBC Premier 4.49 2.19 2.45 2.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 4.15 3.29 3.85 4.19
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank ▲4.25 ▲4.54 ▲5.20 ▲5.54
Kiwibank - Offset ▲4.25 - - -
Kiwibank Special ▲4.25 ▲3.69 ▲4.35 ▲4.69
Liberty 4.84 - - -
Nelson Building Society 4.95 ▲4.29 ▲4.85 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.39 3.54 3.89 4.09
SBS Bank 4.79 3.65 4.19 4.25
SBS Bank Special - 3.15 3.69 3.75
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 3.29 - -
The Co-operative Bank - Owner Occ ▲4.75 3.49 4.15 4.49
The Co-operative Bank - Standard ▲4.75 3.99 4.65 4.99
TSB Bank 5.34 4.09 4.74 4.99
TSB Special 4.54 3.29 3.94 4.19
Unity 5.65 4.15 4.60 -
Wairarapa Building Society 4.99 3.55 3.89 -
Lender Flt 1yr 2yr 3yr
Westpac ▲5.09 4.25 4.95 5.29
Westpac - Offset ▲5.09 - - -
Westpac Special - 3.65 4.35 4.69
Median 4.77 3.65 4.35 4.69

Last updated: 30 November 2021 11:15am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com