I am puzzled why private equity or CUP won't consolidate in this...

I am puzzled why private equity or CUP won't consolidate in this industry i.e. acquire CAF or others. There is no need for each shop to have a compliance officer or a compliance team. The outsourcing model is far more efficient. Also there are synergies on the revenue side (also cost side) in terms of understanding trends across large pools of advisers/clients/customer behaviour.

As the industry consolidates, CUP/CAF or the outsourced compliance officer will almost act as the de facto ASIC. Think in terms of having the capacity to appoint ARs, to run compliance, to monitor etc.

It makes HUGE sense to consolidate.