Increasing ‘once-off’ advice clients

Changing demographics and the cost of financial advice is leading to more “once-off” advice clients, according to Verve Group. 

The firm’s director and senior wealth adviser, Matthew Carberry, told Money Management while there was still demand for advice, the cost of advice priced out some people due to the compliance load. 

“There seems to be more once off project type work especially with the younger generation. Just saying “here is an issue I want solved – can you provide advice on that? I don’t want ongoing advice I just want advice around this situation. So we’re seeing more of that,” he said. 

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Some clients he said just wanted either like life insurance sorted or advice on super, rather than “full blown” financial planning and part of the reason came down to affordability. 

“We’re still seeing plenty of traditional clients come in and do a Statement of Advice and sign up for an ongoing service because they need someone to hold their hand and guide them,” Carberry said.  

“But there’s a lot of DIYers in the 20 to 30 year old bracket. They’ve got information at their fingertips and dabble in the share market. They probably just need a bit of guidance and get guided in the right direction and go off try and do it themselves. 

“I think at some stage they will transition to a typical financial planning client when they have the asset base or if their situation requires it.” 

Carberry said while some of the reason was to do with cost the other part of the reason was to do with the change in demographics.  




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With Hayne2, what really needs a rethink is where your scope includes establishing a new super fund with related advice (allocation, contribution strategies or fee based insurance advice etc) & you wish to charge a ONE-OFF (ie NOT ONGOING) with small monthly instalments over say 36 months, but not charged up front (because there is no money in the fund to charge a fee against). ie this is NOT an ongoing fee arrangement ie Corps Act S962 Subsection 3 http://www5.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s962a.html

The joy of paying PI insurance for 10 years after you provide one off advice??? How good are you are guessing future PI premiums????

don't do it, let them buy crypto and get burned so that you can then take the next 10 years and nurse them back to health and explain risk and reward and implications. one off advice, what about the broad effects of your advice. it's all-encompassing don't do it.

the way financial planning works is everyone gets the upside and that's all well and good when there is one, but all the downside including market risk is the adviser's fault and has to be borne by the adviser.

that's the way it works, upside for everyone we just get the downside. no thanks, and leaving as a result. good luck to you.

Does Standard 6 come into this somewhere ?? and I quote " You must take into account the broad effects arising from the client acting on your advice and actively consider the clients broader long term interests and likely circumstances " UNQUOTE.
Apart from the fact you need to be extremely holistic clairvoyant or have a crystal ball handy ?guess who gets it in the neck 5 years later when something right out of "left
field "occurs.? As an example we have yet one more change to Super { there have been approximatley 74 since 1994} that could not have been though of previously.
There is a lot of mind reading needed here ???

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