The study found that more than half of direct investors not currently advised would be likely to consider professional advice, but are held back by a number of factors.
“The three key barriers to seeking advice, namely trust, proof of tangible value add and affordability of fees, emerge as critical drivers for tapping into latent demand for advice usage,” said CoreData head of advice, wealth and super Salvador Saiz.
Specifially, the study found that cheaper fees would be a particular trigger for those considering taking up financial advice services.
In addition, the study found that investors are demonstrating strong demand for scaled advice, keen to engage with advice services “delivered more on their desired terms”.
“The research suggests scaled advice provides a unique opportunity to start conversations, demonstrate value and develop trusted relationships with investors that may go on to become full service arrangements,” Mr Saiz said.
Three quarters of investors are likely to engage comprehensive advice services if satisfied with the scaled advice provided by an adviser, the study found.
Paul F- it is when the lawyer and Accountant stray from their area of expertise and provide verbal financial planning advice that the trouble really starts.
As in all things the consumer will get what they pay for. The advice industry has an enormous amount of regulation to protect the consumer which makes the advice process expensive.
This is largely due to the very low education standards needed to become a financial planner.
The regulator continues to put as many barriers between the consumer and adviser as possible as they don’t believe the adviser is qualified to provide the advice.
Accountants and Lawyers will regularly provide advice in their specialities ‘verbally’ and simply provide an invoice to the customer. The difference is they have a structured entry program to their industries and the consumer can be confident they are dealing with someone who is appropriately qualified. Yes they make mistakes, but do they have a better chance of having the appropriate knowledge than our PS146 qualified ‘adviser’ that has just completed his or her 6 month short course?