The falling commission rates and high-quality service long enjoyed by Australian institutional investors are being threatened by mounting pressure on brokers to bring resource commitments into line with the relatively small size of the Australian market, according to a report by Greenwich Associates. The report suggests that continued reductions in commission rates are unlikely in light of the services expected by Australian investors from their brokers. ‘Australian brokers continue to be under pressure to rationalize their service model and prospects because relative to global account measures, the Australian market is simply too small to justify the commitments they have made,’ said consultant Peter Lee. ‘Australian investors, on the other hand, continue to expect service continuity despite continued pressure on commission rates, which have been declining for some time.’ Greenwich Associates interviewed executives at 47 Australian institutions for the report, which reveals that both equity portfolio sizes and commissions declined over the past 12 months. The report also examines trends in commission allocations and the concentration of institutional business among lead broker relationships.
UK firms investment in training and development will increase, on average, by a fifth in the next year, claims Robert Half recruitment after interviewing 100 financial services (FS) executives.
A report by broking group Marsh examines the repercussions from the administration of the South Korean company, which filed for bankruptcy protection at the end of August.
Global research by C2FO suggests that smaller businesses are less concerned with the repercussions of Brexit and the upcoming US presidential election.
A squeeze on skilled talent means it now takes an average of seven weeks to fill open permanent roles in finance in the UK according to new research from financial services recruitment firm Robert Half.