If there’s a clear winner from the murky swamp of revelations uncovered by the banking royal commission, it’s the provider of independent administration and investment platforms for the financial advisory industry.
The news that ANZ Bank will divest most of its wealth management arm to IOOF is sweet music to HUB24 chief Andrew Alcock, because it reflects how the banks are distracted in the all-important ‘platform’ sector.
Competition in the advised platform market was always going to emerge, Credit Suisse suggests, but BT Panorama’s ((WBC)) price cuts came sooner and are larger than expected, followed by AMP ((AMP)) for MySuper. While the broker still sees significant growth for emerging platforms, price competition will lead to churn and margin compression.
HUB24 reported another very strong quarter of inflows and net funds under management, leading the broker to upgrade forecasts ahead of what is seasonally the strongest quarter of June. The number of advertisers on the platform continues to grow and the company signed two new major distribution agreements in the quarter.