Advisory firms in Australia have seen profit margins erode in the wake of regulatory measures similar to the Retail Distribution Review (RDR). Now one consultancy claims UK firms face a similar outcome...
It isn't a profit margin likely to impress Sir Alan Sugar. According to research by consultancy Investment Trends, price competition in Australia following the roll-out in 2013 of its government's Future of Financial Advice bill (FoFA) have seen margins reduce to just 1.2x for upfront advice. Though this increases to 3.2x for ongoing annual advice, Australian advisers are still markedly below their UK counterparts, who according to Investment Trends enjoy corresponding margins of 4x for both upfront and ongoing work. For upfront advice, the company's figures are based on 'the total...
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