Australia and New Zealand Banking - Competitors

Australia and New Zealand Banking Competition

Now Viewing Australia and New Zealand Banking's competition in: Financial Planners and Investment Advisors

Recent Developments

Planning Software Critical Tool - Financial planners are unwilling to allow customers access to the planning software they use because they're afraid of being replaced by the software, according to Distribution Technology Advisers (DTA). Of surveyed advisers, 75 percent say that they won't share even a simplified or read-only version of their planning tools. Consumers are increasingly turning to online financial services, according to DTA.

Weak Economy not Affecting 401(k) Contributions - Many retirement plan administrators say that US economic weakness hasn't resulted in lower contributions to 401(k) savings plans. Participant contributions rose slightly in first quarter 2008 compared to the same period in 2007, according to Merrill Lynch. Some investment advisers are concerned, however, that a prolonged economic downturn could lead to reduced contributions.

New Ethics Code Being Developed - Brokerage executives worry that an updated professional code of ethics for certified financial planners (CFPs), effective July 1, 2008, will burden CFPs with enormous paperwork and disclosures, according to Investment News. Firms also fear that the new ethics code could be used in lawsuits against representatives and advisers. The Financial Planning Association of Denver says that it may apply the new standards even to members who don't hold a CFP certificate.

Competitive Landscape

Demand is driven by consumer income and wealth and demographics. The profitability of individual firms depends largely on effective marketing. Large companies have some advantages in providing expertise in a wider range of investment options, and may charge lower fees. Small companies can compete successfully by providing better service and advice. In small and large firms, annual average revenue per employee is about $200,000.

Full Industry Overview For Financial Planners and Investment Advisors

Financial Planners and Investment Advisors Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US securities, commodity contracts, and investments, an indicator for financial planners and investment advisers, is forecast to grow at an annual compounded rate of 3.3 percent between 2007 and 2012.

Securities, Commodities, and Investment Growth Level

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.