COVID-19 to increase advice demand
A survey of 70 advisers by Allan Gray shows 77% saying COVID-19 will increase demand for financial advice moving forward, with 78% saying they were now working from home.
When asked if the Royal Commission recommendations should be put on hold during the pandemic, 54% said yes, 25% said a three-month extension, 14% were undecided and 7% said no.
Advisers also said they were overloaded with communication from fund managers, as 36% said there was a plethora of information from managers and only 9% wanting more.
When it came to receiving that information, video and webcasts were the favourite with 61%, followed by written communication (22%) and face-to-face (14%).
Simon Mawhinney, Allan Gray chief investment officer, said despite the earnings headwinds from the COVID-19 pandemic, the market offered compelling investment opportunities for those with a longer-term perspective.
“Indiscriminate selling has resulted in companies with strong balance sheets and excellent asset bases selling at very attractive prices,” Mawhinney said.
“Subject to the severity of the impairment cycle, even the banks might offer exceptional long-term value.”
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.