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Why ownership structure matters - how this fiduciary financial advisor does it and the benefit for retirement planning and wealth management clients.

Updated: May 16

When choosing a financial planning practice, it is important to ask about the ownership structure and make sure that the practice is committed to best practice fiduciary advisor behaviour by putting the interests of its clients first. Providence Advisory Group is a family-run and owned fiduciary advisor, and has been for over 25 years.

According to a 2021 survey by the Financial Planning Association of Australia, around 37% of financial planning practices in Australia are owned by institutions (i.e. approximately 4 out of every 10). Why could this be an issue for clients?

  • When a financial planning practice is owned by an institution, the primary goal of the practice is to generate profits for the institution. This may not always align with the fiduciary interests of the practice's clients. A family-owned practice is more likely to put the interests of its clients first.

  • To ensure independence. An institutionally owned financial planning practice may be more likely to recommend products and services that are offered by the institution, even if they are not the best fit for the client. A family-owned practice is more likely to take a fiduciary approach and recommend products and services that are in the interests of the client.

  • Customer service can vary dramatically. Some clients feel like they are just a number and can become alienated by talking to differing client service team members or a revolving door of advisors. Family-owned financial planning practices tend to be smaller and have a more personal touch.

Hearing these kinds of institutional experiences from clients, we feel that family or individual ownership is still the best way to find and work with the best fiduciary advisor.


If you have any questions, please book a free 15 minute call here.

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