![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2013\/03\/Anne-Fuchs-2.jpg\")
<\/a>Pinnacle Practice Director, Anne Fuchs<\/strong>, said the market was experiencing a reduction in the number of independent licensees, due largely to the impact of the Future of Financial Advice (FoFA) reforms.<\/p>\n \u201cThe number of truly non-aligned dealer groups, that are well-established and have a good track record, is now so small I can count them on two hands and have fingers left over,\u201d Ms Fuchs said.<\/p>\n \u201cThe fact is that the non-aligned market was not this small this time last year. What the government and ASIC probably haven\u2019t foreseen is that the loss of this whole section of the advice market depletes consumer choice.\u201d<\/p>\n Ms Fuchs said this contraction of choice meant that advisers who want to act independently of institutional influence have fewer places to go, and as a result consumers have narrower service models to choose from.<\/p>\n \u201cI question if that is in keeping with what FoFA originally set out to achieve for consumers,\u201d she said.<\/p>\n Part of the problem, according to Ms Fuchs, is that institutions are increasingly taking strategic shareholdings in boutique groups, in order to attract more advisers into their network. She explained that advisers working under these groups pay heavily subsidised dealer fees and have access to extraordinary resources.<\/p>\n It is not uncommon to see advisers decide that the cost to be non-aligned isn\u2019t worth it<\/p><\/blockquote>\n \u201cI am not sure many advisers in these aligned networks truly appreciate this,\u201d she said. \u201cIn many cases the penny only drops about how little they have been paying once they have decided they want out. They then have some very commercially difficult decisions to make. It is not uncommon to see advisers decide that the cost to be non-aligned isn\u2019t worth it.\u201d<\/p>\n \u201cWhat advisers are looking for when they come to me seeking a new dealer group is independence from institutional influence,\u201d said Ms Fuchs, who runs a \u2018matchmaking\u2019 service for advisers and dealer groups. \u201cUnfortunately that part of the market is shrinking at an alarming rate of knots.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Advisers looking to join a truly independent licensee are experiencing ever-decreasing options, warns one expert, who says the number of non-aligned dealer groups is rapidly shrinking.<\/p>\n","protected":false},"author":1,"featured_media":20002,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,6],"tags":[],"class_list":{"0":"post-19861","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance-regulation","8":"category-dealer-groups","9":"headers-new"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/19861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=19861"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/19861\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/20002"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=19861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=19861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=19861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}