The future is bright for established, well-respected advice firms, according to a new white paper released by ClearView.
The white paper, published this week, has pointed to rising demand for financial advice and the likelihood of an 8,400 shortfall in the number of advisers necessary to meet that demand.
It said that while the Financial Adviser Standards and Ethics Authority (FASEA) regime represented a challenge, research suggested the majority of advisers saw it as a positive development that would fast-track the industry’s journey to professionalism.
“For established, well-respected advice firms, the future is bright,” it said. “They’ll be able to command a good price for the work they do. The only impediments to success will be their ability to find clients and boldly ask to get paid fairly for the value they add.”
“Across the value chain, advisers are in the best position to combat fee pressure because they’re closest to the client. They own the client relationship,” the whitepaper said. “In fact, advisers - alongside consumers – stand to benefit the most from the Royal Commission and the ensuing breakdown of vertical-integration.”
It said that not only would the hurried exit of the institutions from wealth management create the ideal environment for quality advice to thrive, “but already we’re seeing a meaningful reduction in superannuation, investment and platform administration fees with further margin pressure to come”.