Bouris urges changed planner model



There may be increasing demand for financial advice, but that demand will not be met via the traditional financial advice model, according to the founder of Yellow Brick Road (YBR), Mark Bouris.
Commenting on the findings of recent Investment Trends research suggesting around 8.7 million Australians have unmet financial advice needs, Bouris said that increased consumer interest would not result in new customers through the traditional advice industry.
Further, he claimed there was no interest in change in the industry.
"Eighty per cent of Australians don't have a financial plan because they see it as cost prohibitive and confusing. If the industry thinks these report findings will actually result in a significant uptick in people seeking financial advice, they're wrong," Bouris said. "The reality is that the same hurdles that stopped the vast majority of Australians from seeing a financial planner in the past remain today."
He said the only way to service the increase in the desire for advice was to innovate and deliver financial advice in way that was much more attractive.
Bouris, whose company has recently released an advice tool, pointed to the Investment Trends report having identified four times as many Australians preferring to receive lower-cost scaled advice compared to a higher-cost but more comprehensive alternative.
He said that was why YBR had launched its "challenger to the tired, old financial planning model this year".
"People don't want the unclear, expensive style of financial planning that's doled out to the wealthy," he said.
Recommended for you
ASIC has released the results of the latest adviser exam with August’s pass mark improving on the sitting a year ago.
Financial advice practices may be hiring younger or professional year advisers as a succession option, but they may find they are unable to put up the capital if the adviser looks to retire.
Any changes to product labelling for sustainable funds must be applied consistently across investor channels, including those used by financial advisers, according to RIAA.
Having completed its acquisition of fixed income provider FIIG, AUSIEX believes more can be done to increase direct investment of the assets and can envisage them being made more readily available on separately managed accounts.