ANZ Financial Planning strips advice back to basics
ANZ Financial Planning (ANZFP) is developing a simple financial advice model to sit alongside its existing fee-for-serv_ice model, Prime Access, which it rolled out to its more than 300 planners two years ago.
The simple advice model is understood to be a key component of an emerging strategy within ANZFP to explore ways of pro_viding different levels of advice to different types of clients.
This strategy is perhaps best encapsulated in the response by the dealer group to a request from Money Management last week to confirm that it is devel_oping a simple advice model.
A spokeswoman simply said that ANZFP “continues to look at our customer proposition to determine how we can get the right advice to the right client at the right price”.
Earlier, a source within ANZFP told Money Management that the dealer group was developing the model in the belief that the current market “does not cater fully for every type of client”.
The source said ANZFP had kept the model on the back_burner for some time but was recently encouraged to devel_op it by what it perceives is a liberalising compliance environment.
In particular, the source point_ed to the Australian Securities and Investments Commission’s declared support last month of the Financial Planning Associa_tion’s 10-page example of a reduced Statement of Advice.
The source said ANZFP had pre_viously “delayed in coming out with a simple advice model due to the compliance requirements”.
“However, it has been the desire of ANZFP for a consid_erable period to try and find some sort of cut-down advice model that can make it easier for its client base to do business.
“The mums and dads out there form a huge part of ANZFP’s busi_ness and they are absolutely fright_ened off by cost and the complex_ity of advice, long Statements of Advice and complex terminology.”
ANZFP has also been encour_aged by the emergence this year of low cost advice models, notably a $199 Super Health Check by West_pac for Australians with assets of between $5,000 and $100,000, the source said.
Westpac said its basis for launching the model was simply that it was “too difficult for Aus_tralians with less than $100,000 of investable assets to access affordable advice”.
AUTHOR
Mike Taylor
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
