- Agree (48%)
- Disagree (48%)
- Not sure (5%)
We suggested last week that our latest poll may divide opinion. It has.
As we go to print, opinion is split roughly 50/50 when it comes to whether advisers can envisage an evolving and expanded service offer that may be achievable for risk specialist/risk focussed advice businesses.
The largest response group to the poll (only just!) agrees with the proposition that it’s feasible for risk specialist practices – depending on their client base – to build a fee component into their advice business proposition, followed very closely by those who reject the proposition, with a small percentage yet to decide.
This debate stems from our recent story about former risk and superannuation-specialist adviser, Marc Bineham, who advocates that advice practitioners are well placed to offer their pre-retiree clients – the so-called sandwich generation – the prospect of serving both these clients’ parents and their children in a fee arrangement package that can address each of these groups’ ‘pain points’ (see: New Opportunities for Risk Advisers?).
Unlike another conversation that revolves around the potential to charge fees for risk advice under certain circumstances, Binehams’ proposition says risk specialists can maintain their commission-based business model while expanding the nature of their service offer in a realistic and achievable manner, in serving the generational needs of pre-retiree clients’ parents and children.
…many advice businesses are failing to at least explore the possibilities associated with an expanded service proposition
While he concedes this proposition may not be appropriate for some or many practices, Bineham also maintains many advice businesses are failing to at least explore the possibilities associated with an expanded service proposition, and is offering coaching to his peers to outline more details about his model – a path where he has walked the talk as an adviser – as the advice sector in Australia continues its evolution.
Where do you sit on this question? Is it a reasonable argument, or does it sit in the ‘good-in-theory-but-not-in-practice’ basket? We welcome your thoughts as our poll remains open for another week…
