Ann: FY18 Update, page-21

The big factors are that (as per analyst reports) your major bank platforms are now offering what is known as SMA technology and therefore with upgraded tech from their end, it has become an even level playing field very quickly. FUM flow is going primarily into their Wrap - and not their SMA functionality - something else that analysts are starting to question. Next is cash and the cash grab from these new entrants - the Royal Commission along with ASIC now standing up and paying attention to this. If these smaller players like NWL, HUB, PPS are forced to not take cash margin, revenue is impacted significantly (esp NWL - in their Prospectus it was claimed that 33% of their revenue is derived from cash margin!!) anyway in summary - sometimes those that have been speeding get a speeding ticket. i would not be surprised if HUB is back to $6-$7 in 10 months. And for HUB to go even lower on fees, their margins are squeezed severely. I'd love to know what net revenue they make out of that Fitzpatricks deal - i hear not much and analysts are starting to focus more on NPAT/net revenue/operating margins as opposed to just deal FUM flow