{"id":36881,"date":"2017-04-27T11:00:23","date_gmt":"2017-04-27T01:00:23","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=36881"},"modified":"2017-05-03T07:31:36","modified_gmt":"2017-05-02T21:31:36","slug":"time-running-out-for-limited-advice-model","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2017\/04\/27\/time-running-out-for-limited-advice-model\/","title":{"rendered":"Time Running Out for Limited Advice Model"},"content":{"rendered":"

Financial advisers offering a single strand of services and who are reliant on collecting ongoing passive income are likely to lose their place as a trusted adviser, a new whitepaper from a non-aligned licensee has claimed.<\/p>\n

\"ClearView<\/a>
ClearView Financial Advice & Matrix Planning Solutions CEO Todd Kardash<\/figcaption><\/figure>\n

The whitepaper, How To Thrive in the New Advice World \u2013 released by ClearView Wealth owned Matrix Planning Solutions, has called for advisers to shift to offering strategic advice that is not reliant on product advice.<\/p>\n

\u201cTime is running out for advisers who limit the scope of their advice to only superannuation and insurance, and collect ongoing passive income paid by the product manufacturer,\u201d the paper stated.<\/p>\n

Matrix Planning Solutions Chief Executive, Todd Kardash<\/strong> said the reason for this was due to the growth of automated and omni-channel advice offerings, decreasing customer loyalty and further remuneration changes under the Life Insurance Framework.<\/p>\n

\u201cLIF will be a major catalyst for change in advice models because advisers, particularly risk specialists, are set to experience a significant decline in revenue,\u201d Kardash said.<\/p>\n

\u201cTime is running out for advisers who limit the scope of their advice…and collect ongoing passive income paid by the product manufacturer”<\/h6>\n

The paper stated that older style transactional advice models had allowed advisers to build large client books and collect passive income from trail commissions but this model will come under more pressure from other advice models and the need for advisers to demonstrate the value of their services.<\/p>\n

\u201cIn order for advisers to remain compliant and secure their position as trusted adviser, they must continuously add value. The way to continuously add value is to delve deeper into their clients\u2019 financial lives, expand the scope of their advice and help ensure that their total needs are satisfied,\u201d the paper stated.<\/p>\n

This may mean not providing a product recommendation or sale at the end of the advice, the paper added, but rather charging for the advice itself through a strategic advice model that offers services such as debt management, estate planning and aged care.<\/p>\n

The paper stated that a strategic advice model would see advisers providing higher levels of advice to fewer clients, probably within the 150-200 clients per adviser range, and the challenge in making that shift would be for advisers to price their services and then ask to be paid for the work done and value added.<\/p>\n

\u201cAlthough there is significant pressure on advisers to either service passive clients or sell them to someone who can, they don\u2019t have to make the leap from transactional product based advice to full-on strategic advice overnight,\u201d the paper stated.<\/p>\n

\u201cUltimately, advisers can journey to strategic advice at their own pace and incrementally add staff and resources as they expand their scope of advice.\u201d<\/p>\n

\u201cFor a traditional risk-only adviser, that may start by offering coaching on saving, budgeting and cash\ufb02ow management to clients who want to pay off their mortgage faster. At a later date they may decide to branch out into superannuation and investment advice,\u201d the paper added.<\/p>\n","protected":false},"excerpt":{"rendered":"

Financial advisers offering a single strand of services and who are reliant on collecting ongoing passive income are likely to lose their place as a trusted adviser, a new whitepaper from a non-aligned licensee has claimed.<\/p>\n","protected":false},"author":3,"featured_media":36892,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,3,6831,5],"tags":[4247],"class_list":["post-36881","post","type-post","status-publish","format-standard","has-post-thumbnail","category-dealer-groups","category-general","category-practice-marketing","category-services","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/36881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=36881"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/36881\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/36892"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=36881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=36881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=36881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}