Could value of advice shift from SoAs?

Advice should evolve into being coaching and goals-based, rather than being based around a statement of advice (SoA), according to a fintech.

Jacqui Henderson, Advice Intelligence chief executive, said this evolution was based on consumer expectations of advice.

“We see a new realm of financial advice and a new business model emerging where there’s a whole different way of charging financial advice,” Henderson said.

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“With advice, a lot of advisers have put the value of advice down to the SoA document they’re providing their clients.

“They’re charging $2,000 to $5,000 for this SoA document but it’s a document the client never reads.

“It gets put in a drawer and they never look at it again, so really is the value around this SoA document?”

Henderson said clients were not interested in buying a document but to buy a solution to a problem to help them achieve goals.

“It’s not the document that’s going to help and that’s not where the value is seen by the consumers,” Henderson said.

“They’re not coming to ask to outperform the market by 3%; they want to send their kids to a private school or retire at age 55, etc. those are the outcomes where the value really is.”

Henderson said the future of advice would be more aligned to what consumers want, which included technological access to information on demand.

“Technology will also play a big part in that because a consumer doesn’t want an 80-page document, they want it digitally,” Henderson said.

“An app so I can see how I’m tracking, see my financial plan digitally, it’s linked to my investments, it’s linked to my cash flow and I can see how I’m tracking.

“I can go at any time for that instant gratification on an app and that’s where financial advice is heading.”




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Sure - now instead of trying to preach your wares to advisers, who already have disdain for the SoA, do us a favour and lobby ASIC.

This is a very elementary take on the matter. I don't know any adviser that puts the value of their advice purely on the SOA they provide. Call it what you want, comprehensive advice will always need to be documented in some form or another. We will never get to the point where verbal advice will suffice, especially if a product is involved. Simplification of SOAs is another issue, particularly for the large licensees that continue to mandate increasingly onerous requirements. No adviser is charging $3-$5k for an SOA on it's own. Often the generation of the document makes up less than 20% of that number, the remainder goes to paying for the adviser's expertise & time in providing the advice.

Further, I am yet to know of any adviser not providing goals based advice at the moment. This has been mandated by most licensees and for good reason.

This reads like it was from 10 years ago or being written by someone with no view of the advice industry as a whole.

Agreed, Jacqui's comments appears shallow, naïve, and archaic. Haven't had a single client look at the SoA providing any value, rather they're well aware it is a by-product or simply the documentation required for all the hours, work and analysis conducted by the planner and their support team.

We're not talking a toxicology report or an IT systems analysis where the doc is the end result, as any planner already knows.

This is simply a badly thought out attention grab and publicity stunt solely designed to push her wares poorly disguised as a 'news article'. If I was a shareholder in that firm, if anything, I would be a little upset as it could be damaging in how people see that business.

Is this person for real? Does she have any understanding about the industry she is trying to supply?

I can remember 1995...I was young, and just starting out and reading articles just like this when I was studying DFP 3....thanks for the trip down memory lane Jacqui Henderson....you've really missed the mark in selling your software program and understanding your customers needs. Do all software designers think like this..certainly might explain a few things.

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