'True advice' needs to move past product advice
There are gaps in the financial services market that a "true advice model" can help to fill, according to Yellow Brick Road (YBR) chief executive Matt Lawler.
Preferring to steer clear of the "one-stop shop" label, Lawler said using a holistic approach to advice at the accumulation phase of a client's life-cycle is a clear winner among Australians who currently have a range of financial issues to address.
He said to move past a "pure product advice model", it is important for advisers to continually offer more services to clients and utilise specialists in other financial fields such as mortgage broking and accounting.
"We're really looking for gaps in the market where we don't think Australians are being served as well as they could be," Lawler said.
"Definitely the cash space was a gap that we saw - fixed interest products in general."
In relation to YBR's own retail managed fund (YBR Smarter Money), Lawler said there was not only interest generating from the self-managed super fund market but from investors who are currently between property.
"They may have sold a property recently and they're just going to sit on some property for a while until the next property becomes available.
"In that intervening period they're looking to maximise the returns they can get on their cash investments."
As investors' risk tolerance continues to adjust over the next period, Lawler said it was important for advisers to work closely with their clients to address their changing needs.
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
