The cost of delivering full advice has fallen over the past twelve months, according to the latest report from Investment Trends.
The 2014 Planner Business Model Report surveyed more than 1,000 financial advisers about their business processes and key practice challenges. According to the Report, the cost of delivering full advice has fallen from $2,400 in 2013 to $2,250.
The researcher said this has in turn contributed to an increase in practice profitability, with 72% of planners saying they had seen an improvement in their bottom line over the past 12%.
But despite these positive trends, the report highlighted that advisers are still looking for ways to control costs. Among the key challenges cited by planners participating in the survey were:
- The regulatory burden posed by the Future of Financial Advice (FoFA) reforms (73% of planners)
- The need to improve business efficiency and demonstrate value (81%)
“Although the regulatory burden posed by FoFA remains a major challenge for planners, demonstrating value to clients and improving business efficiency is now a greater priority,” said Investment Trends Senior Analyst, Recep Peker.
“These challenges relate to new client acquisition, building efficiencies into their processes, providing affordable advice to lower balance clients and making clients aware of their value proposition.”
For the first time, the survey also measured dealer group satisfaction, finding that advisers working for independent dealer groups have higher levels of satisfaction than those working in banks or institutionally aligned groups.
“By helping planners provide advice more efficiently and demonstrate value better, dealer groups can boost satisfaction and increase loyalty,” Mr Peker said.
