{"id":40627,"date":"2018-04-24T10:15:37","date_gmt":"2018-04-24T00:15:37","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=40627"},"modified":"2018-04-24T13:42:48","modified_gmt":"2018-04-24T03:42:48","slug":"the-future-of-vertical-integration","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2018\/04\/24\/the-future-of-vertical-integration\/","title":{"rendered":"The Future of Vertical Integration"},"content":{"rendered":"
\n\t\t
Would the best interests of the Australian consumer be better served if financial institutions did not own advice networks?<\/strong><\/div>
    \n\t\t
  • Yes (77%)<\/small>
    <\/div><\/li>\n\t\t
  • No (17%)<\/small>
    <\/div><\/li>\n\t\t
  • Not sure (6%)<\/small>
    <\/div><\/li>\n\t\t<\/ul>
    <\/div><\/div>\n\t\t\n<\/div>\n\n

    The revelations coming out of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry have caused us to ask you about the future of institutional ownership of distribution in the Australian market.<\/p>\n

    In framing this latest poll question, though, we’re asking you to reflect on this issue from the consumer’s perspective, rather than as an adviser.<\/p>\n

    The apparent extent of systemic issues in relation to advice and compliance that have been revealed in the last two weeks, particularly as they apply to processes and systems managed within vertically integrated networks, has given a fresh momentum to calls for the big banks to divest themselves of any ownership interests in advice networks.<\/p>\n

    “The apparent extent of systemic issues…has given a fresh momentum to calls for the big banks to divest themselves of any ownership interests in advice networks”<\/h6>\n

    We know that many advisers hold this view, as do many consumer advocates. But does this also hold for consumers themselves?<\/p>\n

    For the millions of Australians who bank with the big four banks, has it become a case of the Government and regulator taking responsibility for the consumer, on their behalf, to ensure their best interests are met – free from any conflict of interest, real or perceived, that can be associated with a vertically integrated advice model?<\/p>\n

    The general mood we sense, based on our conversations with advisers and other industry contributors since the commencement of the Banking Royal Commission, is that the reputational damage being caused by the Royal Commission’s investigations is being felt by every adviser in the industry; not just those who operate under an AFSL owned by the banks or AMP.<\/p>\n

    We could go on… and on! But what we’re asking you is whether you think the ultimate beneficiary of fnancial advice – the consumer, will be better or worse off if no product manufacturers were allowed, in future, to own advice netowrks.<\/p>\n

    It’s over to you and we’ll take up the conversation again next week…<\/p>\n","protected":false},"excerpt":{"rendered":"

    The revelations coming out of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry have caused us to ask you about the future of institutional ownership of distribution in the Australian market.<\/p>\n","protected":false},"author":3,"featured_media":40646,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49],"tags":[4247],"class_list":{"0":"post-40627","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance-regulation","8":"category-polls","9":"tag-feature"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/40627","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\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=40627"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/40627\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/40646"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=40627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=40627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=40627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}