'True advice' needs to move past product advice
There are gaps in the financial services market that a "true advice model" can help to fill, according to Yellow Brick Road (YBR) chief executive Matt Lawler.
Preferring to steer clear of the "one-stop shop" label, Lawler said using a holistic approach to advice at the accumulation phase of a client's life-cycle is a clear winner among Australians who currently have a range of financial issues to address.
He said to move past a "pure product advice model", it is important for advisers to continually offer more services to clients and utilise specialists in other financial fields such as mortgage broking and accounting.
"We're really looking for gaps in the market where we don't think Australians are being served as well as they could be," Lawler said.
"Definitely the cash space was a gap that we saw - fixed interest products in general."
In relation to YBR's own retail managed fund (YBR Smarter Money), Lawler said there was not only interest generating from the self-managed super fund market but from investors who are currently between property.
"They may have sold a property recently and they're just going to sit on some property for a while until the next property becomes available.
"In that intervening period they're looking to maximise the returns they can get on their cash investments."
As investors' risk tolerance continues to adjust over the next period, Lawler said it was important for advisers to work closely with their clients to address their changing needs.
AUTHOR
Staff Writer
Recommended for you
Financial services lawyers believe the government may have good intentions, but the proposed legislation leaves superannuation trustees targeting an unachievable “standard of perfection” when it comes to advice deductions.
Advisers could find themselves unable to receive the fair market price of their advice as the Delivering Better Financial Outcomes legislation states superannuation trustees can reject deductions that are not charged on a cost basis.
Two advice professionals have shared five key takeaways as to how advisers can strengthen their communication with clients, especially at review time, in order to build deeper relationships.
The Financial Services Council has launched the Digital Advice Expert Group to support policy development around digital advice adoption and ensure greater accessibility for Australians.
