Advice delivery needs to be simplified
The industry needs to work together to simplify the delivery of advice whilst keeping the wellbeing of clients at the core of its services, according to Australian Unity Advice.
Executive general manager, Matt Brown, said the financial advice industry had remained focused on complexities of its environment in 2021 but the year ahead would need to see a better solution aimed at simplifying the process of advice delivery.
This would be a solution covering legal, regulatory and technology reform, with the framework enabling both traditional and digital forms of delivery.
“With high vaccinations and international borders reopening, it is a crucial year for Australian clients as households reset their financial and investment goals. Advisers have a clear opportunity next year to support our nation through this period,” Brown said commenting on the outlook for the industry for 2022.
“But for maximum impact, we must be looking toward a simpler advice framework that will lower the cost of advice, reduce the administrative time requirements for advisers, and therefore help a much larger client base.”
According to him, financial advice would belong in the ‘wellbeing domain’, which would be equally important next year.
Asked about his reflections on 2021 for the advice industry, Brown said: “The words complex and complexity are fitting terms to describe our industry’s operating environment this year. The rapid reforms introduced, exiting advisers and a switch back to virtual services in many cities challenged our industry at a time where Australian households needed advice services most.”
At the same time, providers felt the pressures of introduced legislation, which greatly increased the cost of advice and placed higher responsibility and risk on individuals.
“The shifting framework has been a double-edged sword for clients, having been introduced to protect them but also leading to a more expensive and less accessible model of advice. Ultimately, it is Australian clients who are most impacted.
“Another year of COVID-19 uncertainty has reminded many that financial security is paramount, and good financial advice plays a vital role in supporting households.
“Despite the near-term challenges we face as an industry, adopting a model that sustainably protects and nurtures the wellbeing of more Australians must be our long-term priority.”
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