One adviser said that, in many instances, it depended on the profile of the client and the products and platforms via which they were invested, but he calculated that he had already offloaded close to 200 clients.
“We are getting more referrals, but we now actively screen them for ones that don’t create a lot of unnecessary workload,” he said while providing the example of someone earning over $150,000 a year with between $1 million and $1.5 million in assets.
The adviser said that often the decision came down to the pragmatic assessment of which particular product a client was in, how much was being generated in fees and the degree to which this fee generation was being offset by regulatory administration.
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“Taking the lead and trying to fix many of the issues raised in terms of legislation and regulation will require much, much more,” he said.
Anderson’s sentiments were echoed by former dealer group chief executive, Paul Harding-Davis who said he believed that while the ASIC review would likely succeed in identifying many of the key issues driving up costs in the financial planning arena, ASIC would struggle to objectively suggest to remedies to the Government.
A common theme emerging across all of the submissions so far filed with the ASIC review has been the time and costs associated with regulatory compliance, with both Harding-Davis and Anderson agreeing that this reflected the manner in which layers of regulation had been imposed on the industry over the past two decades.