Make general advice easier
Jo-Anne Bloch
The Financial Planning Association (FPA) is calling for the industry to readdress the general advice category to make it easier and more cost effective for clients to gain simple advice about asset allocation or a single product.
Speaking at the FPA 2007 National Conference, FPA chief executive Jo-Anne Bloch suggested five solutions to what she described as the “dilemma” of how to pay an adviser for that style of advice.
Her suggestions included a category called single issue or basic advice, short form disclosure, specific training for this area of advice, better payment options, such as via a super account, and better delivery models, such as over the phone.
“We need to develop and support new advice models [and] payment and delivery,” Bloch said.
“This will expand the pool of financial planners at entry level [and] become a feeder to Certified Financial Planner enrolment and higher advice standards.
“It will expand the opportunities to deliver different types of advice to meet different needs — from simple through to complex needs.
“It will enable varying remuneration structures so that people can pay for the advice.
“And, most importantly, it will lift awareness of the need for advice and access to advice, without seeing commission-based advice as the only answer to providing low-cost advice.”
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