Financial planners move out of big banks

Recent research by investment house Bell Potter found that AMP, ANZ, Commonwealth Bank, IOOF, NAB and Westpac had lost a total of 804 financial planners as of last February.

While the big banks are losing advisers, there appears to be a move by individual financial advisers to smaller companies.

One reason for this may be that the Royal Commission into Financial Services is set to scrutinise the financial advice sector. Advisers may be leaving the big banks, because they are well placed to understand that for banks to advise customers to invest in the banks' products is not really advising customers at all, but flogging product. They fear what the Royal Commission may have to say about that and are moving to financial advice firms that have less or no conflict of interest.

This can only be good for consumers.