when will AMP HIT $2.00, page-74

Interesting article regarding the future of Verticle Integration.

https://www.ifa.com.au/news/29013-advice-in-2021-part-3-structure-of-the-industry

ADVICE IN 2021, PART 3: STRUCTURE OF THE INDUSTRY

...With listed platform provider HUB24 having also taken a significant stake in advice group Easton Investments late in 2020, Mr Crole believes that while it’s currently less popular than it has been, vertical integration is likely to have a renaissance.

“AMP are still there and with HUB24 taking a stake in Easton, it suggests the vertical integration model is not broken,” Mr Crole said.

“For those that have been in the IFA space for a long time, we have had this argument forever, but the reality is price rather than value sometimes wins. Whilst we talk about the moral grounds and the value and those sort of things, really the adviser is influenced in many instances by price.”

Madison Financial Group chief executive Annick Donat agrees that the banks’ exit from advice is likely to be temporary, and the industry has seen this type of deconstruction and dislocation before.

“At the moment the power base is where it should be - with the advisers - but it’s cyclical,” Ms Donat said.

“In about five years all the banks will be buying advice businesses back. I’m going into my fourth decade of doing this, so I know it’s coming.”