Advisers have ‘box seat’ to add value

financial advice Financial Simplicity advice

20 September 2021
| By Jassmyn |
image
image
expand image

Financial advisers can create additional value by managing their clients’ investments, according to Financial Simplicity.

Financial Simplicity chief executive, Stuart Holdsworth, said breaking down the overall investing process into component parts was an area his firm had seen an increasing focus on.

Holdsworth said this allowed advisers to take more responsibility in the investing process and lower the advice cost.

“This approach reduces the amount of external functions and external costs ultimately so advisers can engage with their clients more with them taking part of the investing process, rather than all being outsourced to product providers,” he said.

“The reality is when all the investments are managed by somebody else there's opportunity for the client to move to another adviser if they're not getting sufficient value.

“We find the firms that are managing investment portfolios and advice have an opportunity to not only create additional value but can also demonstrate that value as part of their value proposition.”

Holdsworth said advisers were in a “box seat” to introduce new investment functions that broke down the traditional product distribution model

“For example, they may be helping the client be more tax smart about the way that they manage their investments, something that a product provider is disadvantaged to be able to do because they don't have a relationship with the client,” he said.

“They are actually involved in the management of the investments and they can do so engaged with the client, adding value, and demonstrating an increased value proposition.”

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 hour ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 6 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 4 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 7 hours ago