More focus on client portfolios needed
After another intensive regulatory year, financial advisers may finally need to go back to their roots and focus on the providing advice, according to Lifespan Financial Planning.
The company’s chief executive, Eugene Ardino, said advisers would in particular have to help their clients manage the impact of market volatility on their portfolios.
Ardino said that assuming there would be no more regulatory changes and once the transition period during which many advisers would be moving to fixed term arrangements with their clients would be over, there would be some time for advisers to go back to advice, servicing clients, and finding solutions in the challenging environment.
“[One of the] big themes that is going to play out this year is going to be stock market volatility and normalising interest rates and the impact of that on client portfolios and how to minimise the fallout and make it as painless as possible for clients,” he said.
“I think a lot of people were expecting the share market to go a little bit higher last year. That obviously did not happened, so I think a lot of advisers now are start looking at the portfolio construction and try to make sure that they are positioning well for what could be a very turbulent year.”
Ardino stressed that the sheer volume of all the compliance changes in one go worked as an obstruction to the main thing the advisers should be spending their time on.
“Barring any more structural or procedural changes, this could be the year when we just sort of get on with it and go back to our main focus being our clients and advice,” he said.
AUTHOR
Oksana Patron
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
