It has been claimed that institutionally aligned Australian Financial Services Licensees are funneling new clients into in-house products. Whistleblower Jeff Morris has said the industry lacks the ability to properly manage conflicts of interest, and insisted that the Government should ban the use of APLs (approved product list) by vertically-integrated advice licensees. In response, David Wappett, head of research and relationship manager at MLC Advice said that they provide a range of additional resources to ensure advisers understand the way APLs are constructed. Click here to read more
What makes a viable APL? It's all in what's on it and whether you use it. In essence, if a vertically integrated business treats its in-house products the same as any other... then there shouldn't be any problem. But how to do that?