Advisers who lack ability to control value will end up salaried to a product provider

Advisers who don’t have the confidence or ability to control the value and price of advice they deliver are going to end up salaried to a bank, fund manager or insurance company, according to Strategic Consulting and Training managing director Jim Stackpool.

Many distribution advisers who are fundamentally tied to a product proposition will eventually become a salaried adviser as they don’t have the confidence, ability or skill to be able to articulate the value they’re adding if it’s separated from a product being sold, Stackpool said.

“For many of them, they’re passed it, they won’t be able to learn the skills.”

Stackpool believes product providers and financial advisers are going to be poles apart when it comes to the level of complexity of the service they provide, thus determining who a client would see about their financial affairs.

It’s all about the financial complexity people are facing, “if it’s not complex, I [might] go down to AMP,” instead of a financial adviser, Stackpool said.

In the future, Stackpool said it was likely that advisers will base their pricing on complexity not on product.

Meanwhile, Stackpool said product manufacturers are going to get smarter at helping clients self-select the ideal product for their circumstances in a simple transaction.