What are advice clients paying for?
The majority of financial advice clients view their planner as a source of investment advice rather than planning support, IOOF's general manager of distribution, Renato Mota, believes.
Mota said that just 13 per cent of clients felt they were paying for strategic advice, while 77 per cent believed they were turning to financial planners for advising and managing assets including super and insurance.
Reflecting on data from research by IOOF and business consultants, Effortless Engagement, Mota said, financial planners' "business models should offer tangible benefits and information over and beyond the quantitative measures of product, price and performance metrics".
He added that despite advisers taking a more proactive approach to client communication, the majority of clients surveyed by IOOF said they did not know if they were on track to meet their goals.
However, of those who reported knowing the progress of their investments, 70 per cent said they were on track to meet their goals.
"More worrying is the fact that nearly half of financial advisers don't have the information or systems in place to know if their clients are on track to meet their goals," Mota said.
AUTHOR
Nicholas O'Donoghue
Recommended for you
A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and professionalism”.
Three months on from the first Insignia Financial bid from Bain Capital, what developments have taken place and how have the firm’s shareholders benefitted?
The Australian Financial Complaints Authority has shared how much its member fees will rise in the next financial year.
Advisers may say they struggle to meet their ethics CPD requirements, but the learnings are paying off as research finds it has helped to reduce adviser misconduct and financial fraud.
