Institution size a consideration
Financial advisers looking to move to a smaller licensee should pause for thought, wealthdigital believes.
Pointing to the Australian Securities and Investments Commission’s (ASIC’s) latest research on planning perceptions, wealthdigital said respondents identified a firm’s reputation, size, and focus on advice as key characteristics.
Wealthdigital’s manager of policy and technical services, Rob Lavery said: “While not keen on firms that have a main focus somewhere other than financial planning, consumers do seek size as an assurance of security”.
Advisers looking to move away from large institutions should consider this, Lavery added.
He noted that knowledge and expertise were core reasons why consumers sought advice.
The research said the top issues that Australians wanted financial advice on was investments, retirement income planning, growing their superannuation, budgeting or cashflow management, and aged care planning.
“Aged care planning also ranked higher than some of the traditional financial planning services, such as life insurance, switching super and estate planning, on respondents’ hierarchy of advice needs,” Lavery said.
“There are a lot of advice specialities being promoted currently, and the need for good aged care advice isn’t just one for the future, ASIC’s research highlights that it is need now. The same is true of cashflow advice.”
However, Lavery pointed to the lack of trust and confidence in advice which he said was “particularly concerning”.
“The opportunity for advisers to broaden their services to fulfil the needs consumers identified through the research is significant,” he said.
Recommended for you
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
CoreData has shared the top areas of demand for cryptocurrency advice but finds investors are seeking advisers who actively invest in the asset themselves.
With regulators ‘raising the bar’ on retirement planning, Lonsec Research and Ratings has urged advisers to place greater focus on sequencing and longevity risk as they navigate clients through the shifting landscape.
