The white paper The answer is strategic advice, by ClearView-owned Matrix Planning Solutions, says the business model of the future will see advisers providing comprehensive strategic advice and high-touch service to only 150 to 200 clients.
“For a traditional risk-only adviser, that may start by offering coaching on saving, budgeting and cash flow management to clients who want to pay off their mortgage faster,” the paper said.
“At a later date, they may decide to branch out into superannuation and investment advice.”
Matrix Planning Solutions chief executive Todd Kardash said traditional advice models are under extreme pressure due to multiple factors. These include the proliferation of automated and omni-channel advice offerings, decreasing customer loyalty and further remuneration changes under the Life Insurance Framework.
“LIF will be a major catalyst for change in advice models because advisers, particularly risk specialists, are set to experience a significant decline in revenue,” Mr Kardash said.
ClearView head of strategic advice Allison Dummett said time is running out for advisers who limit the scope of their advice to only superannuation and insurance, and collect ongoing passive income paid by the product manufacturer.
“In order for advisers to remain compliant and secure their position as a trusted adviser, they must continuously add value,” Ms Dummett said.
“The way to continuously add value is to delve deeper into their clients’ financial lives, expand the scope of their advice and help ensure that their total needs are satisfied.”
