Australians are warming up to the idea of financial advice following Michelle Levy’s QOA Review and firms need to prime themselves to meet this new demand, according to Virtual Business Partners (VBP).
Many clients had read the recommendations and were under the assumption they had already been implemented, explained Andrew Rocks, VBP’s head of partnership and business development.
Speaking at a VBP adviser webinar, he said: “We’re getting a lot of practices coming to us saying the new client volume is overwhelming, and the talent pool in Australia to generate advice is wonderful, but it’s really small.”
Rocks added that consultations with licensees, business coaches, product providers, and other stakeholders that formed the “engine room of the industry” regularly raised the question of increasing capacity.
“I’ve been an adviser since 1994, and legislation never stops, and it’s always delayed. Sometimes, you’ve got to look at what’s coming but [also]what’s playing in front of you,” Rocks said.
“At the moment, clients are being told in the media that they should get advice. This is a great turnaround.
“They used to tell clients to run away from advisers; they’re now saying run for an adviser.”
VBP’s head of client experience, Sarah Matthew, added the efficiency gains from some of the review’s recommendations, like the removal of statement of advice (SOA) documents, would greatly benefit the client experience.
“I think, in order for these clients to receive advice, we must look for ways to increase adviser capacity to serve,” Matthews stated.
Future-focused firms would be those which were preparing, resourcing, and looking for efficiencies through technology to further their advice capacity even as the industry waited to learn more from Minister of Financial Services Stephen Jones, she added.
“I strongly suggest [firms] be aspirational. You want to build that capacity up; you don’t want to wait too long,” she said.
“And regardless of the QOA Review, advice firms should be looking to the future — potentially seeking to partner with global HR advisory firms to ensure their work is not limited by geographic location, but also continuously looking for ways to increase their efficiency.”
