Speaking to ifa, Mr Miles said the announcement of a special deal between his dealer group and the CBA-owned fund manager speaks volumes about the growing strength of the independently-owned market.
“It’s reflective of a few things. Firstly, CFS, of all of the big instos, is the most able to work with independents – they have put a stake in the ground,” Mr Miles said.
“Secondly, they understand that if they back the right independents they will see efficiencies.”
The deal will see clients of Fortnum authorised representatives potentially “halve their investment management costs” off the back of a headline rate discount for Fortnum advisers, Mr Miles said.
However, while he praised CFS, the dealer group boss and former MD of Associated Planners (which became Genesys) said CFS’ competitors are not demonstrating the same level of support for IFAs.
“There’s no question the rise of independents is on now,” he said. “Other instos will fight it as long as they can. I don’t believe any of the others really care about the independent market.”
Westpac and AMP were singled out by Mr Miles as two institutions that “do not get it”, referencing the offer of transition payments to former Genesys practices as an example.
Mr Miles also took issue with the recent claim by new Securitor practice Integral Private Wealth that it will maintain an “independent focus”.
“[David Simon] reckons he’s an independent while operating from the Westpac office and using Securitor and BT Wrap – give me a break,” Mr Miles said.
In another sign of support for the burgeoning non-aligned advice market, CFS has signed on as principal partner of the ifa Excellence Awards for the second year in a row. Finalists for the awards have now been announced.
Dave, it saves the client money. Nothing from the platform to the dealer. Zilch.
Cheaper to the dealer group!! Are the savings passed on to clients!! OR is this an alternate form of conflicted interest??
Spot on Ray and a good deal for Fortnum clients. But this once again shows how the instos are using their ability to have differential product (client) pricing to enlist advisers to use their product thus making them pseudo vertically integrated. The instos have plenty of fat in their platforms to be able to massively reduce the pricing equally across the board for the benefit of investors but they are now using it not for client benefit but for individual greed. It gets even murkier if an insto offers better product pricing for different licensees that they own. Just more reasons why the regulator should be focusing on the manufacturers and leave the poor adviser alone.