Demand for one-off advice drives new opportunities for advisers

A growing demand for one-off advice among clients is bringing more opportunities to advisers wanting to build and expand their secondary client base given that the cost of advice delivery has grown significantly over the last few years as the number of advisers per clients per adviser is decreasing.

According to Angus Woods, founder and executive director at Adviser Ratings, around 15% of advisers declared they would want to leave the industry, as a result of being overwhelmed by the Financial Adviser Standards and Ethics Authority (FASEA) exams and ongoing requirements, while at the same time the demand for advice remained strong across all age groups.

“The last 12 months we have seen an influx of consumers wanting advice but unfortunately advisers sitting on the sidelines cannot deliver it at the moment, because of the cost of that advice,” he said during a webinar with Vanguard on Wednesday.

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He said that advisers were concentrating more on wholesale and sophisticated clients and spending more time on complex arrangements which meant they had no time left nor the inclination to look after those perceived as low value clients.

“I think we are going to start to see that shift from the holistic [advice], and that always is going to be important, but more into that one-off advice type of advice arrangement. With that one-off advice people are looking to see what the advice can do for them before they become the holistic client,” Woods said.

The research also confirmed a drop of about 10% in the holistic advice segment over the last 12 months.

Libby Walsh, Vanguard’s practice development manager, said that fewer clients per adviser trend was also driven by the switch-off of the grandfathered commissions last year but, at the same time, the proportion of clients looking for one-off or ‘situational’ advice went up by 20%, creating the new pool of potential full-time clients for advisers.

“The opportunity for the advisers is really to focus on growing their client base. And potentially you can consider growing a secondary client base looking at those clients who do require situational advice or on-off advice and building that as a secondary client base to potentially full service clients,” she said.

By doing so, advisers could also, according to Newman, help to change their client demographics base by reducing the average age of a client and diversify their revenue lines.

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Don't think so, too expensive, too much time, too much business risk. We are holistic only and breaking at the moment due to two factors, further regulatory chokeholds (eg Enhanced FDS OMG, ASIC telling super trustees not to trust signed client declarations!!) and inundation with new business.

On top of that our enquiry strike rate is also up.

Currently reviewing our fee levels due to cost of advice provision.

Staff stretched to the limit.

Be warned, if you take on too much new business you will struggle to service it in the near future. Planners wages are going through the roof in coming years.

The last thing you need is an increase in once off, high risk, time consuming advice.

My attitude will likely change once Robo becomes feasible and regulatory relief is more than talked about while they tighten the screws, but right now, no way!.

Yeah wish these people would stop telling us one off advice is the opportunity. Unless the regulators change rapidly, and the technology providers, particularly XPLAN, decide to invest in the tech, then you'd be a dodo to go down this path. And the tech guys have good reason not to invest - the regulators don't stop changing the rules - they need a settled playing field to invest capital.

Plenty of providers other than XPlan are investing in tech. Rather than complaining that your 24" black and white TV hasn't magically transformed into a 60" flat screen LED, why not take the initiative yourself and switch products?

If you're worried that you have invested too much time and effort trying to make XPlan work properly for your business, write it off as a lesson learnt, and move to something with greater ease of use, flexibility, and out of the box capabilities.

If you're forced to use XPlan by your licensee, change licensee. Or better still, get your own licence.

These issues are all within the control of self employed advisers. If you think it's all too hard and you want someone else to take all the decisions and responsibility, you shouldn't be self employed.

hmm, so there are around 350 fintech software start ups in the market all claiming they have the new way, so which one does it all in your vast experience, and has the capital to go the distance, because many of them won't last.

I think you have just confirmed you have the mindset of an employee, not a business owner.

Have owned a fair business for over 20 years. I think you have just confirmed you have the mindset of someone who likes to stir trouble but when challenged have no comeback of information.

No thanks !!
After already turning away lower value clients given current regulatory framework we are still too busy with holistic clients and the ever increasing paperwork required by the regulators, licensee for no real client benefit other than can tick all the boxes.
Congrats Hume, ASIC, Hayne - you reap what you sow which unfortunately is now becoming all too apparent with many people being unable to find nor afford personal advice.
Unfortunately this will mean people will turn to unlicensed sources or product providers under the guise of general providing conflicted advice. Or maybe not with ASIC largely turning a blind eye those who are unlicensed or call centres where advising on rollovers & implied personal advice with no SoA nor BID.

I find all this 'one-off' advice talk amusing. An adviser with a profitable business and spare time on their hands, may be happy to engage in 'one-off' advice. But the bloody-minded government and psychopathic bureaucrats have decimated our profitability and lumped enormous amounts of red-tape on us. So good luck finding an adviser who will engage in this activity.
If you want professional financial advice in this country now, get out your chequebook, be prepared to spend big and wade through insane amounts of documents and red-tape crap which offers zero benefit to you. If you fail to be a good little girl or boy, by not turning up to your annual meeting on time and signing 5 different forms, you will be cut off immediately. Your adviser will not re-engage and you will be replaced very quickly. That's the way it is now folks.

Thanks for your useless insight Angus.
When was the last time you provided one off Advice ???
As other comments have said the mindless Canberra bubble bureaucratic morons of Frydenberg, LNP, ASIC, AFCA and FARSEA have made one off Advice totally prohibitive cost wise and BS Regs risk wise.
But hey you are so wise Angus, we will happily leave it to you to make all the $$ from this market segment.
The only smart Adviser play is Less Clients that all pay more fees.
Good luck with your approach, enjoy Disneyland that you live in.

that's it. fewer clients paying more. that's the only game in town. everyone else can go to finfluencers. it's endorsed by the financial services minister. it's all good.

Yup, the product floggers with the grubby noses have got all of the answers for the advice industry. That worked really well last time.......

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