Time for financial planners to amplify value of underlying advice
Advisers need to test their value proposition to ensure their clients are fully aware of what they are receiving, according to Neil Younger, BT Financial Group’s head of dealer groups and licensee select, advice and private banking.
“They need to start amplifying the underlying advice content rather than merely amplifying asset-based growth, which is what we have traditionally seen in the planning market,” Younger said.
Amplifying asset-based growth in the client relationship is what is “leading to some of those perceptions around poor advice” in the market, he added.
“If you’ve lost 30 per cent of your portfolio wealth in the last 12 to 18 months then of course you are going to attribute that to poor advice if all that’s being amplified by your adviser is asset growth.”
Younger said advisers need to amplify all the strategic and structural services they deliver to clients as part of their value proposition.
Asset growth is a part of that value proposition, but clients also need to be clear on the value of strategic advice, such as preventing them from making investment mistakes, he said.
Recommended for you
High-net-worth advisers seeking to grow their businesses are likely to find alternatives to be a key part of the puzzle amid investor demand, according to Praemium’s head of private wealth.
The financial advice profession has lifted back above the 15,500 mark this week thanks to a double-digit net rise in adviser numbers, according to Wealth Data.
A closer watch on licensees that fall short on cyber security protections is among a dozen new enforcement priorities announced by the corporate regulator for 2025.
Research house Morningstar has welcomed a new director for manager research to cover Australian and New Zealand fund managers.
