Looking to the future, Adviser Ratings said in its latest Musical Chairs report that the advice industry has reached a “pivotal moment” as the events of the last several years have led to a transformation of the industry itself.
“The convergence of technological capability, regulatory reform and evolving client needs creates unprecedented opportunities for practices willing to embrace change,” Adviser Ratings said.
“However, success will require more than just adopting new technologies or adapting to regulatory reforms – it will demand a fundamental rethink of how advice practices create and deliver value.”
With the first tranche of the Delivering Better Financial Outcomes (DBFO) passing and the second round currently in progress, Adviser Ratings suggested that advisers now have an opportunity to reimagine their processes for the benefit of themselves and their clients alike.
“The practices that will thrive in this new environment won’t necessarily be the largest or most technologically advanced, but those that best understand and adapt to this evolved concept of value,” the firm said.
“It’s a shift that places client outcomes at the centre while recognising that operational efficiency and professional excellence are not competing priorities but complementary elements of a successful modern practice.”
While these changes are undoubtedly significant for the future, Adviser Ratings said that 2024 also saw advice businesses ascend to the top of the value chain in the financial services sector, bolstering advisers’ position in the professional ecosystem.
While this was highlighted by the high-calibre international interest and private equity deals seen last year, the firm suggested that this position is not only claimed on the basis of financial benefit, but also advisers’ contribution to the “public good”.
“The financial advice landscape underwent a fundamental transformation in 2024, marking what may be remembered as the year the profession finally claimed its rightful place at the top of the financial services value chain,” the firm said.
“While headlines focused on major deals and regulatory reforms, a more profound shift was taking place – one that redefined not just where value is created in financial services but what constitutes value itself.”
Adviser Ratings added: “As we move into 2025, the opportunity and challenge will be to build on this foundation, creating sustainable value that benefits advisers, clients and the broader community alike.”
“It’s a shift that places client outcomes at the centre while recognising that operational efficiency and professional excellence are not competing priorities but complementary elements of a successful modern practice.”
Oh please, let’s not tout this as a ‘new evolution’. This is what has set the best practices apart from the rest for decades. The fact that more practices are finally being professionally run means just that.