Industry shakeout good for advisers

Jenny Campbell

Speaking at TMM’s Annual Roundtable, advisers and lenders said they expect changes to the Financial Advisers’ Act, such as additional qualification requirements, to weed out many advisers. They also expect the adviser channel and business volumes to grow in the next few years, as customers find it more difficult to take out loans.

Jenny Campbell, National Sales Manager at Astute, the new Aussie player in the market, said there would "definitely be a fall, no question”. “That is a good thing though, as it will bring professionalism levels right up. It’s good for the good operators. Those who aren’t up to speed will have a tough decision to make.”

BNZ head of third-party distribution, Adam Ward, expects a shake-out in the market. “A lot of people have come into the market, thinking it’s easy money. As the market tightens, it will get tougher, and you will see advisers drop out,” he said.

Josh Bronkhorst, managing director of Mortgage Link, believes the new financial advisers' regime would directly impact adviser numbers. He said only high-quality advisers would thrive in the new system. “If you don’t have the ability to become a FAP in your own right, you should not be given entrance into a FAP.”