AXA chief says future of advice assured
AXAchief executive officer Les Owen says that despite all the recent bad news, the outlook for the Australian wealth management market is good.
Owen says that while adviser and consumer confidence in the financial services industry is low as a result of poor equity markets, the Australian Consumers’ Association (ACA) and Australian Securities and Investments Commission (ASIC) survey, and issues facing a number of major financial companies, there is cause for optimism.
“The financial services industry is still a huge part of the economy. And going forward there will be more demand for advice, not less,” he says.
According to Owen, the increased demand for advice will be related to demographics.
“It’s an old story but it’s worth reminding advisers that we have an ageing population and nine per cent superannuation contributions are not going to fund these people in retirement, so we are going to see changing work patterns and a growing need for advice,” he says.
Owen also argues that the growing sophistication of investors and the plethora of investment products available to them will create a huge demand for advice that won’t go away.
“These things further highlight the need for advice. That won’t dry up, in fact, it will become more abundant and more complex.”
He also believes there will be more legislation in the industry that will help to increase consumer confidence, but consumers will become more price sensitive.
Owen says further cause for optimism is that Australia leads the world in wealth management.
“Our open architecture means we are probably world leaders in wealth management,” he says.
On the future of the industry, Owen expects advisers to operate in one of three ways — to align with a bank, to be part of a small boutique firm, or to align with the Australian arm of a global fund manager like AXA.
Owen plans to take his message on the road with a series of AXA expos planned for Sydney, Melbourne, Brisbane, Adelaide and Perth next month.
AXA has said the expo will be a showcase of its services and products and is open not only to planners, but also to paraplanners and support staff.
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