Australia could change its financial advice landscape at a faster pace than the UK, which took around three years, leading to a more efficient and professional industry.
According to Intelliflo, which recently partnered with Centrepoint Alliance, the UK financial advice landscape had been “transformed” by UK regulation called the Retail Distribution Review which came in at the end of 2012. This brought in changes such as the end of commission and necessary educational qualifications.
It was then followed by EU regulation on data protections which increased the need for data accuracy and fee transparency.
A similar story could play out in Australia, the firm said, thanks to changes such as the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and qualifications from the Financial Adviser Standards and Ethics Authority (FASEA).
Nick Eatock, chief executive and chair of Intelliflo, said: "Following a period of significant upheaval, which saw adviser numbers fall and larger players exiting advice, the UK advice industry took two to three years to turn around. What has emerged is an industry that is both more efficient and more professional, with an increasing number of Britons seeking advice”.
The firm added the COVID-19 pandemic had accelerated technological change and encouraged advisers to consider measures such as remote working and video meetings that they might not have done so without the pandemic.
“We expect Australia to follow a similar trajectory but perhaps at a faster pace, given the level of technology adoption we have seen across the industry during COVID-19. There are great synergies between the UK and Australian financial advice markets in terms of adviser needs, regulatory reforms and market dynamics,” added Johann Koch, international business development director.